good morning. coming up on msnbc's "your business." this company doesn't care if you buy anything at their retail stores because they're selling data on your shopping habits. we have advice on how to better promote youtube and your business. and this woman created high-tech backings for earrings so you won't lose them. will the execs at hsn let her sell them on their network? when it comes to making decisions, let's grow smart. that's coming up next on "your business. ".

>> msnbc "your business" is sponsored by american express open, don't do business without it. >> "your business" is sponsors by american express. don't do business without it. hi, everyone. i'm jj ramberg. and welcome to "your business," the show dedicated to helping your growing business. does the rise of online shopping mean the death of brick and mortar? one pair of entrepreneurs isn't waiting to find out. they have developed a new brick and mortar business model that doesn't depend on making sales or stocking inventory and still make a profit. how are they doing it? and will they succeed? we went to silicon valley to find out. when you walk into the san francisco store, every move you

make is turned into data. >> here you can see that the customer just kind of is walking by, not stopping at this product. but once he enters the zone of the product, it turns green. >> this is data. and according to the founders, it may be the new face of brick and mortar retail. >> our model was not built on sales. it doesn't matter whether you buy now or somewhere else. >> what did he just say? >> i doesn't matter to us if you buy now or buy somewhere else. >> data doesn't make money from selling the product on display. and the customers are not the people shopping in the aisles. the money data makes comes from the brand explaining the item in the store. >> brands is a month ly square feet needed for their products. >> as we have reported, consumers shift to online shopping.

>> the problem is that most people like to shop with a way that is not easy to structure a business around. >> huchb ow often do you see pe buying something on their phone while in a retail store? >> veboo and fuphillip wonderedf they would make money from these sales? >> we have hundreds of people walk through our stores and this is a way to get our products discovered in ways they never cou could. and could trained staffers be available to ask questions. >> i love that customers come here, experience, hands on. if they buy it here, great. if they go somewhere else, that's fine, too. >> this is a consumer electronics company. beta not only serves as --

>> this really makes us great to connect with the year-end customers. >> the beta stores are a research laboratory where manufacturers get realtime feedback on the creation actor. >> everything from depression, to shopping, we are looking at things and just counting. you can't see faces here. as you browse different products, we're able to stop and measure your attention per product and what ones you're ignoring walking by. >> i have no model with the p n this. >> bob hoffman is a former

advertisement owner and industry critic. he worries about privacy issues about the surveillance marketing. >> when i walked into their store, i should have been notified that i'm being videotaped. and i wasn't. >> i think most people know if you walk into any store, you're going to be monitored. there are security cameras there. there's no difference. >> the difference is intent. you don't know what they're doing or what they're going to be exposed of. ? >> in light of the customer data protection, bob suggests it may be dangerous for data to ignore the issues of significant security. >> if they were to tell, hey, by the way, we use customers and up want to be transparent by that.

we don't identify who you are. then it is gone for everyone. phillip says he doesn't want to hide anything. and when it comes to privacy -- >> we are transparent and have no problem kind of speaking to it. and we are very open about what we're doing. >> he says the content is anonymous and the data is encrypted and stored on the cloud in a security server and deleted in 15 days. phillip and veboo may see this marketing platform. >> that's how we think about it. >> we are just catching up in the physical world, the business model that the internet has enabled. and we were just the first, but

there will be a long line of people coming in like this. long gone are the days when using video to market your company is just for businesses with pockets. today with not that much work this can work. more than a billion users, they just launched youtube director on site. it's so good to see you. >> thank you for having me here. >> video is a great way to get your message out. >> exactly. so we know that small businesses have so many stories to tell, everything from why they got the idea, why their customers in, and the video has the full sight, sound and motion to bring that to light. and it is where your customers

are. we see more and more people turning to on demand, youtube, you mentioned, aso on. >> let's watch a few minutes of this first one. >> we employ 500 of the best chefs. >> i land creek oysters, what did they do well there? >> this is a point park harvester. not the market first to name the mention off their video, the number of crimes that gives credibility to them.

>> we are eating, drinking and watching the game. we keep an eye on the culinary trends while still selling the classic bar food. >> here we are going for authenticity. >> exactly. i love this one because so many small businesses think if you're getting into video advertising, you may need to use expensive actors. and that can be intimidating. whether it is the real customers or employees, it makes your business come to life. you want to check it out. >> and it is fun for the employees to experience this and share it with their friends also. you don't have that much time. people's attention spans are relatively small. you have to take all the ideas and stew it down to something simple. >> it is important to keep your message simple. focus on one key thing to differentiate your business, why your customer should care about you. one is a company caller hey

customerfield, an upholstery video. why you want to buy old versus new. and then the before and after shots of how the business has made the furniture more beautiful, it makes it clear why you want to work with them. finally -- >> visit warmth.com today. >> what did they do that was great? >> close the video with a clear call to action. the viewer needs to know, what do they do next? if they want to learn more about business and engage with you. whether that is showing you the call to action. they ended with their websites to know how to engage in their business. >> thank you so much, kate. thank you for stopping by.

>> sure. for several weeks now we have been doing our elevator pitch from here at hsn, the original tv network. we have made some dreams come true and we had a few disappo t disappointments. they are going to have a chance to sell their product live here in this studio to millions of households. i wish them the best of luck. >> so good to see you. >> i'm so excited to hear your pitch. and congratulations for getting this far, it's a big deal. >> thank you so much, it is, it is. >> tell me the name of your product again. >> yes. >> i understand this is four years in the making to you. you're going to be pitching to two people.

these people will decide if you get a chance to be on hsn. how do you feel about this? >> oh, my god. >> dara and matt, they work for hsn and know what they're talking about. you look gorgeous, they did a great job on you. the product is great so let's go see it. >> all right. >> hi. i'm from chrysmela. thank you for having me. chrysmela is the most high it have tech security back. have you ever lost an earring? 86% of us have lost an earring at least once but no more. chrysmela is the only lock and unlock wing-back technology. debuting in five countries, it uses the same precision technology behind iphone cameras. inside the tiny devices are

three -- it stays lock until you unlock it. no wonder "people" magazine called it the most unique invention ever. i'm so happy to share this invention that i found in japan with millions of people in the states. thank you. >> perfect timing. not perfect timing for me. i just lost a gorgeous earring that my husband bought me. which now he knows because i haven't told anyone. i need this, what do you think? good job, by the way. >> i love it. quite honestly, i'm wearing clip-ones because of the fact that i lose earring backs all the time. real quick question, though, does it help to hold it in place on the front as well? >> yes. great question. we heard so many customers requesting the lift function, so

we developed this. this will give you extra lift and extra support. >> all right, what do you think, matt, how did she do? >> good. one of the things you want to think about is you've had a lot of other potential competitors in the market for earring backs. play up to what are the true technologies and the benefits of chrysmela, including strength componen components, and this can show the consumer how this can benefit her. >> she can't stop shaking. this is such an amazing chance for you. now we'll find out what the answer is. is miami going to get the chance to pitch live to millions of hsn customers? are you ready for this? now you're shaking again. it's going to happen.

all right. let's hear. we'll see if the on air goes. is she going to get the chance to pitch live? yea! yay! >> thank you so much! >> ooul i'll be your first cust. miami, my god. four year dms ts in the making! >> we love to make dreams come true, girl. >> thank you. >> what does this mean to you? >> i don't know. i'm speechless. i'm just so happy. i'm so thrilled to share this. i fell in love with this product when i first saw it in japan on my trip. >> did you think you were going to get it on air?

>> i wasn't sure. >> we are tough cookies. >> thank you. we wish you the best of luck. >> thank you for the opportunity. >> thank you. >> i'm taking these. we love our pets. americans spent nearly $70 billion on them last year. inspired by her rescue dogs, marie moody decided to start up a pet food company with emphasis on nutrition and safety. as jenna hager bush tells us, her idea gives two paws up from pooches everywhere. >> i always loved animals. when i started this, i didn't know it would look like this. >> reporter: maureen moody founded stella & chewy's in 2003, a pet company named after her two rescue dogs. the idea came to her after receiving devastated news from her vet. >> chewy was a once-in-a-lifetime dog, your soulmate dog. when i first got chewy, i was working with the fashion industry. and he was sick. and the vet said, this dog is

not going to make it. and i sorted got this epiphany. i started doing research on food, so their dna is still not 99.9% wolf. it made a lot of sense about how they went back to eat in the mild. >> she met chewy meat, fish and vegetables. how did chewy respond? >> he got 100% better. not slightly, but 100% better. and he lived to be almost 17. >> when dud you realize that this is something other people want? >> i think i started to realize this when i saw how much better chewy got. if you love to your dog, feed it a high-quality diet. >> reporter: she spent six months drafting and what were the early days like?

>> i had industrial freezers for years. i did deliver by taxi and then i got a minivan and turned that into a dlufry vehicle. >> so you were like, you've really made it. >> this is the greatest day. >> producing this, she needed a new base. she moved it to her hometown of milwaukee where 300 employees now work. and where bring your best friend to work day is every day. this makes it a pretty fun place to work. >> yes. you can see, smells food. >> reporter: these are freeze-dried all next to the office. this is where all the stella & chewy magic happens. >> that's right. >> talk to me about that transition and why it was so important. >> a lot of people have

difficultying giving up titles or delegating. and that is not an issue for me. >> when i was able to step back was when he was going into first grade, second grade, third grade. >> do you have advice for other women starting their own companies? >> i think it's about you have to really want it. i mean, for me, i felt like i really didn't have a choice. like, i had to do this. i wanted to do this. >> her determination paid off. today, stella & chewy's is sold in 5,000 stores nationwide and is now a multimillion pet food company. >> this is a great industry to be a part of because it is a happy industry. people love their dogs. >> what do you think it takes to be a good boss? >> i think if i had to say, certainly, some degree of compassion and empathy while

also being very strategic in able to drive your team. >> we have launched the second season of our podcast been there, built that, and this week we're talking to sam yagan currentlyyagen the ceo of shoprunner but is best known for creating okay cupid and match.com. sam tells us about starting a small company, what it's like to making the transition to being acquired, running a large company and why he moved from online dating to online shopping. i hope you all get a chance to listen to it, it's really interesting. the podcast is still pretty new and we love to hear what you think. so go listen for free. it's called "been there, built that." you can find it on tune in or wherever you get your podcasts. still to come, how to properly compensate your sales force, and why you need to keep a close eye on employee engagement.

♪ ♪ (baby crying) ♪ ♪ don't juggle your home life and work life without it. ♪ ♪ and don't forget who you're really working for without it. ♪ ♪ funding to help grow your business... ♪ ♪ another way we have your back. ♪ ♪ the powerful backing of american express. don't do business without it. as part of our growth, we are building our sales organization. i'm interested in knowing what suggestions or advice you have in structuring our compensation

plan for our sales force. >> so i would say that compensation plans are not a game of perfect and it's really just about getting something done and established. a couple of years ago our sales team had requested that their compensation package would really be more based on objective measures as opposed to subject i've measures so we took that employee feedback and implemented a new plan. as we developed that plan, we got most of the leg work done in a reg afternoonly short period of time but there were things we were trying to perfect and realized that no matter what there were going to be some flaws the program. so we decided let's get a new plan in place, take that employee feedback in stride. knowing that the plan wasn't going to be perfect, we also committed to making changes and to adjusting that plan year after year. >> we now have the top two tips you need to know to help you grow your business. let's introduce our panel and get their advice. stephanie was the ceo of a

company she recently sold and entrepreneur and investor scott is the co-founder of socket and the chairman of all work and you also just sold a business, so congratulations to both of you. we're getting advice from two very successful people today. let's start with you, scott. >> the top tip is what i call the zero marketing strategy. it's just saying no to save your business and to get what you really want. if you think about yourself, you have principles, you have values, things that are like a moral compass that you don't go against. you build the same attributes into your business. as you're building your business and things start to unfold and go into the market, you encounter all different sorts of situations. the retailer you wanted to go into wants your brand but all of a sudden the margin structure doesn't allow you to do it profitably. an investor wants to come in but the valuation is way too low. it's at that moment where you really have to stop and say, no, this is against my plan. if i go forward, my entire plan will fall apart and there will

be irreparable damage. so what happens often is if you're really building something of value in the market, at that point of saying no, you get to go out and exercise the business the way you need to do it. what you often find is that those partners end up coming back to the table and you get exactly what you want and you're much stronger for it. >> but what you also might find is a drop in revenue or something happens along the way, right? you make it sound so easy. you say no and everything turns out great. really what happens is often you say no, you lose an opportunity and it goes up in the bottom line. >> you may suffer in the short term but prosper in the long term. very often you'll see businesses making short-term decisions that don't benefit them in the long run. >> mine is regarding surveying employees. every year we would take an annual survey of our employees and get a feel for what they felt the real issues were.

>> how many employees did you have? >> 32 employees. >> how did you get them to tell the truth? >> number one, we did do an anonymous survey. >> but no one feels like it's anonymous when there's 32 people. >> we told them we're going to put this out to see the results. i had no idea what the results would be when we took over the business so it was a little bit being vulnerable and saying, hey, let's see what's going on in the business, let's get a baseline and we were just putting forth a five-year plan so it gave us an idea of what the hot spots were and how people felt. they knew i'd be looking right at it and had no problem saying exactly how they felt. >> i think also what you need to manage in that situation, though, is one person being very fired up about one issue and then not getting it addressed, right, in a way that makes them feel better. so you've opened up the doors, asked me what i think, here's what i think and now you're not

changing it. >> precisely. so what we ended up doing was showing the results to the entire company in an all-company kind of all-hands meeting. yeah, we would go right through. it would be very, very obvious what the problems were, what the hot spots were we call them. yes, you're absolutely right, it's very obvious. you could see so many people selected 1 or 2 here but most people were 9s or 10s. still in, a company of 32 people, one or two people absolutely matter. and you don't know who they are. so we would get in teams, let's all fix this together and figure out some solutions here. i think it gave people a better understanding of these things aren't easy to solve and also we need to get behind it as a team and accept it and understand it in order to do it. >> it also gives you a chance as the owner or team leader to say, look, we're not going to fix this, right? it doesn't fit in with what we're doing and so now it is up to you. do you want to stay here or not.

great advice, congratulations to both of you on the sales of your companies. well, our business is based on traffic and so a great app that i use religiously is called quickalytics. it ties into google analytics and gives me almost up-to-the-minute information about where our traffic is, our audience and so forth. that's been very, very helpful, especially with my traveling. >> one of the apps i like a lot is downcast. i spent a lot of time on the road and so if i'm not making calls, i like listening to podcasts to learn from other entrepreneurs and business leaders who have done similar things in their businesses. what's neat about downcast is not only does it constantly refresh and upload the latest podcast that i like but makes suggestions. >> a.w. watermark is a great tool. it's free and allows you to repost your pictures on any site with your actual logo or website on it. so no matter how far it goes as

far as being shared, you have a presence wherever it goes. plan . this week's your biz selfie comes from trevor bayack who owns free your arms in new york city. they pick up, deliver and store packages. it's perfect for people who don't want to schlep their luggage to and from the airport. now, why don't you do what trevor did by picking up your smartphone, taking a selfie and send it to us. or you can tweet it to to @msnbcyoursbiz. make sure to include your name, the name of your business, the location and don't forget the hash tag. thank you for joining us. we love hearing from us. if you have any questions, comments, just want to say hi, e-mail us at yourbusiness@msnbc.com. also check out our website,

msnbc.com/yourbusiness. and do not forget to connect with us on all of our digital and social media platforms too. remember to check out the podcast "been there, built that." you can download it from apple or wherever you get your podcasts for free. we look forward to seeing you next time. until then, i'm j.j. ramberg, and remember, we make your business, our business. ♪ ♪ (baby crying) ♪ ♪ don't juggle your home life and work life without it. ♪ ♪ and don't forget who you're really working for without it. ♪ ♪

funding to help grow your business... ♪ ♪ another way we have your back. ♪ ♪ the powerful backing of american express. don't do business without it. welcome to "politics nation." on sunday morning, it's time for reflection and i wonder about the health of the nation as it ingested another week of trump falsehoods and contradictions. we know his ardent base remains impenetratable to logic, but those who still have concerns and yet support his presidency, i ask what is the