The Secret Sauce Behind WeWork’s Over-Valuation Is Just Marketing
Why WeWork isn’t a real estate company OR a technology company
If you’ve opened your LinkedIn in the last month, you may have seen a lot of stirrings regarding WeWork’s upcoming IPO. In the last week, there has been talks that WeWork may be lowering its $30 billion valuation to $20 billion for the IPO.
Repeatedly, WeWork, the leader in the co-working industry, has been touted as a real-estate company positioning itself as a technology company. Let’s talk about how they were able to get to that $30 billion valuation.
Hint: the secret is marketing… shhh…
A Marketing Framework
Have you ever received one of those crazy joke birthday presents where you receive a box within a box within a box within another box? And when you open the final box it’s literally just a lump of coal? And everyone thinks it is a hilarious prank despite all of the cardboard waste?
Yeah, marketing is basically just that.
Good marketing and branding can wrap an unattractive lump of coal with a bow and then sell it. And no marketing, or worst of all, bad marketing, can ruin even the most rare of diamonds.
