Ep. 46: How Cathey Armillas Created a Viral Marketing Campaign Before YouTube, Leading to over 1M Website Visitors in One Month

Transcript

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Welcome to Scale Tales – the business storytelling podcast where entrepreneurs, executives and experts share firsthand accounts of those magical moments when they achieved something bigger than even they could have imagined.

I’m Alicia Butler Pierre, your guide during this next scale tale. Technological advancements always seem to be a double-edged sword. On one end, it gives you access to tools that make life and work faster, easier, simpler, and honestly it may even level the playing field for you or your organization. But on the other end it can open you up to privacy invasions, uncontrollable spam, and…fraud.

I’m Alicia Butler Pierre, your guide during this next scale tale. As human beings, we have no shortage of ideas, but oftentimes we talk ourselves out of those ideas. And it might be for good reason – some of those ideas might be borne out of fear or anger, and, if acted on cause damage. But what about those other ideas? You know, the ones that you, your boss, your peers, or your family and friends think are crazy, maybe even silly. What if you actually went through with it, and, gasp, what if it actually works?

This is what happened with our next guest, and someone I have a deep respect and admiration for. It all started when she found some videotapes stored on a shelf and had an idea to put them online. No one could have predicted what happened next.

This is Ep. 46: How Cathey Armillas Created a Viral Marketing Campaign Before YouTube, Leading to over 1M Website Visitors in One Month

Hi, I’m Cathey Armillas. I am TED coach and CEO and Co-founder of Speaker Skills Academy. I’m currently living in Portland, Oregon and this is my scale tale.

So it started for me back in 2000. Yes, the year 2000 seems so wild to go back to that year. Remember the song 1999? We’re gonna party like it’s 1999. Well, it was 2000 and was pretty young. I got this job as director of marketing and it sounds really fabulous. But it was for an industrial shredder manufacturer and I was the marketing department. So director just meant I was the director of me.

And I remember when I first got there that it wasn’t what you would think. When I saw the ad for it, they were looking for this director of marketing. I thought, oh, industrial shredder must be like very big paper shredders. When I got to SSI, the company that I started to work for, I realized they were making shredders to shred boats and cars and massive amounts of computers for recycling purposes.

They would throw all these computers in and it would shred and then it would go down these conveyors and then be sorted by ferrous and non-ferrous metals and plastic. And they would take all of these separated pieces and recycle them to be upcycled back again into products like computers. It was interesting, I’m not going to lie. I thought it was really cool. I think that everybody that worked there at the timewas kind of like, hmm, I mean I work at an industrial shredder manufacturing plant.

But what really excited me is I remember they had this wall of tapes of all these shreds they had done for clients and there were these test shreds. They were building the shredder could be couple hundred thousand to like multi-million dollar whole shredder system. And before they ship it off, they’re showing the client, a test shred, if you will because always what was important was what came out of the bottom of the shred. I mean you might be shredding these big tires and at the end of the day they needed to be like one inch or smaller and they needed to fit in your hands.

I started looking through the tapes and I was like, What? We’ve shredded shells of torpedoes? Why are we not doing something cool with this? So I asked the CEO, “Can we integrate this onto our website?” I remember at the time, he’s just kind of like,

“I mean, how many people can buy a half a million-dollar shredder? We’re not talking about the general public buying this.”

Hmm, that’s not how the Internet works. Even back in 2000, that wasn’t how the Internet worked. And so I convinced him that we could create the site. We actually got a custom URL for it – watchitshred.com and ended up putting a bunch of these videos up of us shredding various things. And at the time there was no YouTube. We had to take all of these videos and they had to be a minute or less because the entire video had to download basically before it could play. And there was no streaming. So we created these little flash players and we put them up on our site.

And the Internet went crazy. Like, really crazy. Some blogger found our site and then wrote about it to his people that were following him. And then it ended up on this site that I don’t even know if it exists anymore, but it was the site of curated blogs. It was called Boing Boing. And it ended up boinging, I guess that’s what it’s for, right?

Those videos weren’t the only thing boinging!

One day I’m looking at the back end of our site and I’m looking at the numbers am I reading the zeros right? Does that say a million people visited our site last month? I just was like blown away. And at the same time I was looking at our bill we were getting charged for all this again, there’s no streaming, So everything that people are watching we’re getting charged for this. That whole thing was very fascinating. It was almost kind of scary at that time.

Nowadays when we see something somebody posted got 10 million views or maybe even a billion in some cases, we don’t think anything of it. At that time, that was a really big deal. There was really no concentrated, curated place where you’re going for fun to look at things like that. nowadays it’s normal. Like, oh, I want to see tires being shred. You could find it in a hot second. But back then, I think it was unique and it was novel, and it ended up working.

So with the millions of people that were watching this, of course, it’s only a tiny percentage that were really viable business prospects for the company, but all of the people that came along with that drove all the Internet traffic to the point that if you were to type in the word, “shredder,” just a single word, “shredder,” we came up at number one, which, as you probably know, it would cost a lot of money to.

Keep in mind, this was purely organic traffic. No SEO. As shocked as Cathey was over the results, she quickly learned that, with fast growth comes…

A lot of challenges during that time, even if you look at the numbers. First of all, the big challenge was trying to convince the CEO. I don’t want to speak too much for him, but I really don’t think that he loved marketing at the time. I think he thought it was, like a necessary thing, but an expense. So to have, someone like me, the director of marketing, up on man lifts, and I’m recording videos, and I’m putting them on the Internet. I don’t know if he saw the value in that at that moment. And maybe he’s just like, Oh, well, this is just a really fun job for her. And I think a lot of the company might have felt the same. Like, we’re all working really hard, and she’s out here doing this really silly stuff. Why? Are we paying her to do this?

I mean, I did really silly stuff, by the way, so I can understand. I started creating this thing called the Shred of the Month. I would make these storylines. The one that went viral the fastest was this one where we did this whole video where this VW bug comes in, and it’s all painted with hippie and peace signs. This hippie gets out of the car, and he sees that he’s parked in the president’s spot, and he walks away. And then somebody comes out and on a walkie talkie, tells somebody else to come shred this car. The guy comes and picks it up, then drops his bug and then we shred it.

And all of a sudden we had all this traffic, and you would think, Oh, cool. You have all this traffic now and no more challenges, right? Wrong! So imagine a company that has, I’d say, the lead time from the moment that somebody says, “Ooh, we need to buy an industrial shredder.” I mean, you’re looking at many years, right? It’s not like, “Oh, we’re going to buy one now.” There’s a lot of engineering requirements and things, and each shredder that we would make was very technical, so it wasn’t something that you could just be like, I’m going to take that model, and that’s what we’re going to buy.

Imagine now all of a sudden that I’ve flooded our lead process, and now all of these leads that are legit and will probably eventually buy a shredder are now crowded with people that are just very interested in what we did and why we did it. That was another part that was very challenging because we had to figure out how to quickly sort them. So it created a new sense of urgency, of like, umph, how do we quickly, like, go, okay, that’s a legit lead, that might not be. And there were so many of them. There was really no easy way back then to do that. So that kind of caused a problem.

Another problem that it caused is our company had never, went over the $25 million mark. The company had been in business, at the time, about 28 years. And we always wanted to hit that threshold. I think the highest we had ever gotten was 21 million. 18 months after we launched the Watch it Shred campaign, we were a $17 million company, a year and a half later at $42 million.

You might be thinking, more money is a great thing! Who would complain about that kind of scale in revenue? But too much growth too soon can be catastrophic if you don’t have a solid business infrastructure in place to support it.

We were built to operate at a certain level, there was a lot of manufacturing strain as well. But I think the CEO ended up doing a really good job. That’s something that he was really good at. I mean, today, if you go to SSI in Wilsonville, Oregon, they’ve expanded their plant. I have no idea what their numbers are anymore, but they’ve expanded their plant, and I think they now have a really good system.

They’ve been selling internationally for years. But in those days, in those moments, I think sometimes people look at successes and they don’t understand that with every good thing can come a very challenging aspect.

I jumped on that quick! I was one of the first accounts to have a video that would reach over a million. And it was the The Hippie Bug one, It’s still out there. it has like, 30, 40 million, which, by today’s standards…it’s funny, again, looking at the difference between then and now is like, I mean, there’s probably cat videos that have more views than that, right?

But for a business to step in this arena and to be, doing something like that, especially at the time, None of our competitors were doing anything like that. we were smart and we backed it with not just the videos. We started making Watch it Shred in our trade publications instead of showing the machines like other people did.

Our other competitors are like, “Hey, this is our shredder. This is what it looks like. Yay!” Sometimes the only time you could tell the difference between one competitor and another, other than the logo at the bottom, was the color. Because many of the manufacturers would stick to a particular color. So, if you saw a dark green, you might know it was somebody. Ours tended to be blue. So, now we did something different.

We’re like, let’s talk about what we’re actually shredding instead of the machine itself. Now we’re showing, big torpedoes and stuff. We’re actually kind of making the product the hero. And at that time, that was not being done in the industry. So that was another way to kind of holistically look at it, which is to say, Hey, if we want to take this business and we want it to grow exponentially we need to become the Kleenex® of shredders.

We need to become that one company that they say, oh, we need to buy an industrial shredder. We, have to talk to SSI. So, for me, it was a whole lesson in psychology, marketing, economics, It was a very fun part of my story. And I always look back on that with fondness, and I love that the company is doing so well.

You have to understand that there’s a lot of companies that can do well for a long time, and then there’s some reason that they go out of business. And we saw some of the competitors do that during times when steel prices surge up really high, and all of a sudden you’re not able to manufacture a big, heavy piece of equipment at a price that will be reasonable in the current market. You have to find ways to innovate and stay on top. It’s not just about getting your income to go up.

In case you’re wondering what a “hippie bug” is, it’s another name for a Volkswagen Beetle, particularly one from the 60s or 70s – a time when carefree young people, also known as hippies, were at their peak.

How did Cathey get SSI’s CEO to approve of her recording videos of shredding things like a hippie bug to put it on their website? Remember, this CEO saw marketing as a necessary expense, and not as an asset-building pathway to more clients and more revenue. What did she say that convinced him to fund her “silly idea?”

Yes. That is such a great question. You know, one thing that I really loved about Tom Garnier, he’s CEO and founder of the company. He is somebody that I look back in my career and I don’t think I realized how brilliant he was of a businessperson. But I can tell you this one piece from my perspective. I had talked to him about it several times, and it wasn’t flying at first, but I really believed Tom to be this kind of person that if you come in and you really believe that something will work. He’ll give you the autonomy to do it. Now, it wasn’t like he was like, Ah, here’s a million dollars. We were so grassroots.

We had a certain budget for marketing so I just had to create some of these campaigns and try to stay within that budget. But I’d say the biggest thing that we did outside of that was paying to have this Flash player and this website put up. But I think he really, at some point just said,

“If you honestly, truly believe that this will help our business function, then let’s do it!”

Tom gave permission, and, well, the rest is viral marketing history. Just how viral did Cathey’s Watch it Shred marketing campaign go? Well, it made it to primetime television in the U.S. and Japan! And SSI never looked back. Coming up after the break, you’ll find out just how successful this marketing campaign was, how Cathey was rewarded for it, and how it led to her working with people just like you.

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Welcome back! Before the break, you heard from Cathey Armillas, the high-energy TED Talk coach and CEO and Co-founder of Speaker Skills Academy. She began recounting the story of the time she took some shredding demo videotapes and put them online. This was all before YouTube. She, and no one else for that matter, ever expected that these videos would ultimately land the company coveted spots on major TV networks. And to think her idea was initially considered silly. But this was silliness with a purpose. And that silliness quickly paid off, not just in website traffic but in actual revenue. Here’s Cathey.

I remember the day I got a call from the David Letterman show that they wanted to feature us, and hung up on the person that I called because I thought it was a joke. And then I got an email and I was like, oh, that wasn’t a joke! It happened fast. we launched the campaign within probably like a month or two of launching the campaign.

The blogger wrote about it, and within the next couple of months, that’s when we had the surge of a million people over the course of like a month, or it could have been like 45 days or something like that, but it was like an astronomical number change. It was like 40 people visited your site, and then all of a sudden…

Keep in mind, this was all organic growth. Cathey and SSI did not pay for this publicity. The David Letterman Show or more correctly, Late Night with David Letterman was a hugely popular nighttime talk show in the U.S. The fact that they called her and not the other way around is a BIG DEAL!

But I can’t help but wonder – what did her coworkers think about all this newfound fame?

SSI is in its heart of hearts an engineering company. It was one thing that Tom was very proud of is that he used to work for one of the other competitors, but the other competitors made, like, three models or some really basic things. And Tom saw the need of somebody might want to shred this one thing for this one reason it has to be this exact size.

And he saw the need for it to be engineered to something specific. Most of the company was engineers, and then there was the sales department who actually were sales engineers because they also had to understand the engineering of it. So, the entire company was engineers. And, you know how engineer land works. Everybody bring proof!

It has to, make logical sense. Do you know how fluffy everybody in the company thought the things I was doing was? Don’t get me wrong, everybody in the company was awesome. SSI had this great culture of great people, but I know I was the wacky weirdo asking our plant manager, “Hey, I’m gonna film a segment. Is it okay if I get two of the operators when can I come out here? Because I want to shred bowling balls. I want to see what happens with bowling balls.”

I shredded, a whole bunch of soccer balls because I wanted to see if they would, like, go flying out or pop. And I used them for a video, and they’re just like, “What is going on?” I didn’t get help the whole time I was there. I got help that I went and got or that I would ask for. Can we hire this consultant or this person to do this or whatever? But mostly it was me curating everybody within the company. But we quickly ended up on
TV shows.

The David Letterman crew, flew to Wilsonville, Oregon, to film a bunch of things. And we were talking directly to the producers, from our parking lot. They’re like, “Shred the boat now!” We shredded a Dodge Daytona that was made of medal. We shredded jet skis. we shredded a whole bunch of things for the show. And we ended up on Modern Marvels, on the History Channel. Just so many…a Japanese game show somehow.

It became a thing at that time. It was fast and it was chaotic. I can’t even like really tell you how chaotic it was during then, but it was clear that it was working. And I, I do remember the one day that Tom came back to me he was on one of his volunteer boards and they were having a meeting one night and he goes,

“Last night I was telling some of the people on this board about our campaign and they didn’t know our website. So they went to Google and they just typed the word “shredder” in. we came up right at the top. And then it hit me, in that moment, of what all the stuff that we had been doing, what it actually did for the company.”

He saw that it positioned us in the pole position, basically.

The CEO went from literally being a “doubting Thomas” (name pun intended) to one of Cathey’s strongest advocates. And his eureka moment came at the perfect time. Not only did Cathey’s work generate massive brand awareness, but it also helped the company break through a ceiling they hadn’t crossed in 28 years: the $25 million revenue mark. I asked Cathey if she received any type of public recognition or compensation as a reward for her record-breaking work.

I got a raise and I got an all-day spa package thing as a thank you, which was really awesome. The day that I left SSI I finally just decided that I really wanted to start my own company. And when I left, he offered me a severance package, even though I quit. And he told me when I left, oh, it was so nice. He said,

“I’m gonna say that I knew you back when.”

I’m in my, at that point, maybe late 20s, early 30s. This was my first, really big, awesome job, so to leave and hear that was kind of the biggest thank you that I think I could have ever gotten. A year later I remember I was flying back from New York and I got him this thank you card and I thanked him for being a great leader and believing in me. I mean, I kind of summed up that whole thing and I mailed it to him because when I had a step back, I said that whole thing was a really big success, but any one of those components could have made it go a completely different way.

No kidding! It was one thing for Cathey as the Director of Marketing to raise awareness about SSI’s shredding products, but once leads came in, they still had to be vetted, nurtured, and ultimately converted into customers. That’s the job of the sales department. But I wondered if, at the end of Cathey’s 10-year tenure with SSI, was she able to grow her marketing team beyond herself.

Yes, yes, yes, we did. Our engineering department was the largest, and then we had a small sales team, and they were all sales engineers, all really knowledgeable, very great at working with the whole project timeline and the management of everything and having the communications with the client. We had that as a very solid base that… they were really great at that.

I did have. There were a couple people that were hired from time to time to assist me, you know, to kind of do more of the admin stuff, because I was kind of doing everything. I was even in charge of our sales database. Somehow I had to learn SQL. Like, it’s crazy. I’m like, I don’t know about all this, but I learned it. I also learned Flash at the time. I built our whole website on Flash, which now doesn’t exist.

But there was a lot of things that I had to do, and it was really fun for my career at that time because I was having to learn all of these different, applications and all these new skills. And we had hired a couple people, but by the time I had left there, it was just me. And for most of that 10 years that I was at the company, it was just me. When I left, I gave a month notice because I created this whole machine marketing thing and I can’t just leave it. So they hired somebody else. And I trained him for weeks before I left.

After that though, I do think that they hired more people because they really started to double down on that. I saw for years that they started to do some really fun educational and training videos to train people on how they could get better use of their recycling the materials. And so they really took it a little bit further.

And to think it all started with your idea. And speaking of ideas, you are the queen of being able to take an idea and turn into something like what you just shared with us. Can you share with us more about the work that you’re doing now through your company? Because, again, idea seems to be the thread, knowing you and knowing the work that you’re passionate about currently. As I’m listening to this story of something that happened many years ago, I’m like, okay, yeah, there’s that thread again, the idea.

Yeah, that’s really observant of you because when I was in the thick of it, I did not know that. that’s how I operated the whole idea. To make this whole thing a campaign in hindsight was a good idea. Not to use the word idea too much, but to be able to support it back to the trade and to tie it really to the business ended up being a very good idea. When I left, I thought, I’m gonna do for other companies what I did for SSI. You know, maybe small to mid-sized manufacturing companies that don’t have the budget for a big ad agency.

But I decided to start a little marketing consultancy. And I did that for a while, but I was never able to help a lot of companies. Yes. The magic of being there and doing all the things was just very magical at that time. But one of the clients that I had after I left I ended up coaching on his marketing, and then he ended up getting asked to give a TED Talk.

And I was like, oh, well, I wrote a marketing book and I’ve been speaking all over the world on this marketing book here, let me see if I can help you. But I’m also a psychology major, so I really helped him on this. And then the executive producer of the TED event was like, “We need a coach. Can you do that?” So you’re right. there’s been this weird string of ideas. So now I’m, teaching, I started coaching people to give TED talks, I give storytelling workshops for big companies and I co-found it with my really good friend Mark Williams in Brooklyn.

We co-founded an awesome one-of-a-kind online community called Speaker Skills Academy. Because there’s nobody in the world right now that’s teaching the art of speaking by getting in the room and actually drilling the thing. Oh, you want to learn how to use humor in your speaking? We’re going to do it in the room. Like we’re going to drill. So, we’re really excited about that. We started it like two years ago.

And I can personally attest to the power of Speaker Skills Academy. In fact, that’s how I first met Cathey, and it happened to be as I was preparing for my own TEDx Talk. She, Mark, and their community of speakers were extremely welcoming and gracious and gave me advice that made my talk even more powerful.

Okay, I must ask about this. If you’re not watching the video version of this podcast, then you can’t see this but there’s a beautifully organized wall of Nike shoes behind Cathey. Nike is headquartered in Oregon, where Cathey is located, and I know she’s worked with several of their executives. Knowing Cathey, this is likely more than just decoration.

Yeah, I’ve done a lot of work with a lot of storytelling with Nike. But the wall of shoes, these are my speaker sneakers. I only wear these on stages. They don’t touch the ground outside. And when a client hires me, I send them a picture and I say, “You get to choose which shoes you want me to wear?”

Yep, just as I suspected! See, I told you. Cathey is full of brilliant ideas which brings me to my next question. For project managers and founders who might be struggling to articulate their own ideas, or who want to improve their communication skills, how can they sign up for the Speaker Skills Academy? Is it still a good fit for people who aren’t necessarily preparing for a TEDx Talk?

I would say that’s more of the community. So yes, anybody who wants to be better at speaking and storytelling and let’s be honest, that should be everybody! Right? Speakerskillsacademy.com. We have an awesome community of people from mostly all over the United States right now, we run two sessions a week but we do have two people outside of the United States right now that are part of the community. Everybody is welcome. your only, prereq is that you want to get better at speaking or storytelling for whatever reason.

Take Cathey up on her offer to join. When you do, one of the tools that you’ll likely receive is her Idea Map. It’s a tool she created to help people distill their core message. In fact, as a paid member of our community, you can download a copy of the idea map and watch a bonus video where Cathey explains how to use it toorganize your next talk or story. Don’t worry, we won’t leave you hanging here – listen up as Cathey gives us the highlights of the Idea Map.

Thanks, Alicia. It was kind of born because of the huge amount of work I was doing with Nike many, many, many years ago, like maybe 10 years ago. Everybody at Nike was so busy and I was thinking about psychology and how we can put together a really good presentation, a story or a talk or a speech.

And I needed a shortcut. So I ended up creating this thing that I call the idea map. And it’s just all about how do you get to the idea first and then what do you support it with and how do you think about the opening and closing attached to the idea. So it’s a really great system. People are using this all over the world and everybody that I coach I start them with the idea map.

Well, again, everyone, if you want to see exactly how the idea map works, we definitely encourage you to sign up for our membership portal. We’ll have more details about that in the show notes. Cathey, thank you so much. This is highly a highly anticipated interview, and I can’t thank you enough for taking time to come and speak with us today.

Oh, you’re so very welcome. Thank you!

As I reflect on the story Cathey just shared with us, I’m reminded of a saying we have in the U.S. – one man’s trash is another man’s treasure. She found treasure in the videos that other co-workers thought little of. Her idea to take those videos and put them on the internet before the days of YouTube was bold and innovative.

Here are some other lessons learned from Cathey’s scale tale:

1. Become the “Kleenex” Your industry: Kleenex is a brand of tissue and is so well-known that people use the words “Kleenex” and “tissue” interchangeably as they request one to do something like blow their noses or remove makeup. Similarly, Cathey’s “Watch it Shred” marketing campaign was so effective that all a person had to type into a search engine was the word, “shredder,” and SSI’s website appeared. What can you do to have your product or service become synonymous with your organization’s name?
2. Challenge the Status Quo: Don’t be afraid to pitch unconventional, exciting ideas, especially when the status quo views marketing, or even operations, as merely an expense. Back your conviction with data and use Cathey’s Idea Map to tell a story of what is possible with your idea.
3. Embrace Your Product or Service as the Hero: Or, as many marketers will tell you – features tell, benefits sell. Shift the focus from showcasing the technical details of your service or product to demonstrating what your service or product does and the transformation it creates
4. More Attention Creates New Challenges: Fast, uncontrollable growth will strain existing operational processes and systems. Design and build a business infrastructure that can sustain unexpected growth.
5. Organic Growth is the Best Growth: A truly novel marketing campaign can drive massive organic web traffic and boost search rankings to what Cathey described as the “pole position.” Organic growth is also a major cost savings compared to the costs of investing in SEO, especially as AI continues to change the way we search.
6. Innovation is Essential for Longevity: Companies must constantly find ways to innovate and stay on top, especially during unpredictable market fluctuations and government regulations.

Let’s give it up for Cathey Armillas! Thank you again for sharing your scale tale with us. You can connect with her on social as well as her website. Links to that as well as that shredding video, yes, we found the infamous VW bug shredding video, are available in this episode’s show notes. We’ll also have some links to business infrastructure resources for you as well. Visit ScaleTalesPodcast.com. Again, that’s ScaleTalesPodcast.com.

If you want to know more about Cathey’s Idea Map and how to use it, then you can access that by becoming a member of our podcast portal. It’s free to join for the first 30 days! So, give it a try! You’ll gain unlimited access to other member-only content, special offers, and the ability to earn PDUs and continuous education credits. Click the link in the show notes to sign up today

Thank you for listening! If you learned something valuable from this episode, please leave us a five-star rating and review wherever you’re listening.

I’m Alicia Butler Pierre and I produced and narrated this episode. Additional voiceover by Clarence Levy III. Audio editing by Olanrewaju Adeyemo. Music production and original score by Sabor! Music Enterprises. Video editing by Gladiola Films. Show notes by Hashim Tale.

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