Vin Gupta, Indian Giver? (updated)

Remember this cringe-worthy Superbowl ad about the stereotypical desi salesman who is about to be fired by his cranky white boss? [Update – changed from the Panda ad to the Ramesh ad, thanks VV]

It was written by the CEO of InfoUSA himself, Vin Gupta. The ad was not just offensive, it was a total waste of money:

The panda ad ranked 45th out of 55 ads shown during the Super Bowl. The other Salesgenie ad, with a salesman who thinks he is going to get fired, ranked 50th. [Link]

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p>Gupta doesn’t seem to mind spending money though, as long as it gets him visibility. Gupta is an FOB, a Friend of Bill that is (although he is also a DBD). Gupta is generous to Bill not just with his own personal money, but also with the company’s resources as well:

Gupta’s Clinton connection came into the spotlight last year, when angry shareholders of InfoUSA filed a lawsuit in a Delaware court; claiming that the CEO had wasted millions of dollars of the publicly-traded company to get into Clinton’s good books.

They seem to have good cause. The plaintiffs have alleged that Gupta misused the company jet to fly the Clintons to vacations. Gupta is believed to have paid Bill Clinton $2 million for vaguely-defined ‘consulting services’. In addition, he is alleged to have spent close to a million dollars to fly Bill Clinton around the world for his Presidential Foundation work; and to fly Hillary to campaign events. [Link]

After the Clintons left the White House, Gupta hired Bill Clinton as a consultant. It’s one of two continuing business relationships he has had since leaving office, and it has been worth $3.3 million, in addition to the options on 100,000 shares of stock. [Link]

<

p>But here the story shifts, and becomes stranger.

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p> The latest twist in the story involves Gupta getting something from the Clintons, for a fraction of its costs. The most important asset of a campaign is its lists of contributors. You normally guard these with your life. So why was the Clinton campaign renting these to Info USA, and for a fraction of their market value?

Political campaigns spend thousands, even millions of dollars to acquire good mailing lists. Last year, New York Sen. Hillary Clinton took the unusual step of renting out some of her lists. Reports from Clinton’s campaign show that on Dec. 3, it collected payment for renting out three mailing lists, the sale of which netted them $8,225.

It was an unusual transaction, according to Roger Craver, a liberal guru of the political direct-mail industry. “As a general rule, a campaign will not let its donor list out into the markets until the campaign is over,” he said. “This is the mother’s milk of small-gift fundraising, and they use these lists frequently.”

According to one direct-mail professional, $800,000 would have seemed like a more plausible price for a quality list. [Link]

So what is going on here? Why is such a generous donor to Bill getting gifts, as it were, from Hillary?

It seems like obscure inside baseball, but it’s very strange behavior – no other campaign is lending out its lists, and here the Clinton campaign is not only lending out its list for nothing, but to somebody who is paying Bill millions of dollars. Was this a quid-pro-quo? Or just a sale of an unimportant subset of their main list as a test to gauge the valuation of their donor list?

38 thoughts on “Vin Gupta, Indian Giver? (updated)

  1. List service providers provide data management services nd direct marketing services. HRC might be compensated in the services they offer to her campaign amounting to a specific cash value. nothing shady. happens all the town. $800K worth of list paid for in $8K cash and $792K worth of data management, DM services.

  2. Several sources who work in political consulting and in direct mail, who would not speak for attribution, said they were surprised by the deal, as well as its low price. [Link]

    People in the industry were surprised by the transaction. This story isn’t coming from the Freepers, it’s coming from NPR, hardly a bunch of rabid Hillary haters. They might be wrong or misled, but I thought it was prima facie interesting.

  3. That ad… how could you even start to explain the awfulness?

    “When two trains love each other very, very much, sometimes they meet on the same track and… kiss. Grownups call this a ‘train wreck’…”

  4. instead of bashing him.. give our brown brother some props… he a freaking mulit-millionare !!!

  5. instead of bashing him.. give our brown brother some props… he a freaking mulit-millionare !!!

    I always find that reaction puzzling. I neither hate people because they have money nor love them for the same reason. Why would I?

  6. Ennis, I always love your innocence to Charlotte from Sex and the city. Very classy yet very simplistic.

  7. i have to agree with simran. I dont understand why you need to mention that he is a FOB or a DBD. I despise it, when people throw these terms around to set a sense of superiority.

  8. Ennis, I always love your innocence to Charlotte from Sex and the city. Very classy yet very simplistic.

    I’ll cop to simplicity as well as being a simpleton. Growing up I had friends who were very wealthy and poor; friends on welfare and friends who lived in very expensive Manhattan real estate. Right now I have one friend who has retired as a multi-millionaire, and another friend who is too broke to pay tolls on the highway who is hoping that their food stamps application gets approved. I can’t say that either fact affects whether or how much I heart them at all. It’s like having friends who are short and tall, skinny or fat, old or young.

    I guess that shapes my outlook towards strangers with money. I don’t think of it as being either intrinsically good or bad.

  9. My ad agency has been a steady client of infoUSA’s since the 80’s. In the olden days, I used to talk to Vin directly. Nice guy. Then he started playing golf with presidents and had no time for clients like me. I have been awed by his company’s incredible growth. In the list business, they are almost a monopoly.

    Vin’s highly targeted and qualified lists have made my clients and, in turn, me a lot of money over the years but I guess not as much as we have made him.

    11 Ennis: “I guess that shapes my outlook towards strangers with money. I don’t think of it as being either intrinsically good or bad.”

    Thanks for saying that. I find suspicion of wealth to be nothing but the flip side of the wholesome goodness often associated with poverty. Both opinions are affectations, both espoused by people who are neither rich, nor poor.

  10. And oh, Vin’s Superbowl ad was asinine. He should have hired my firm to do the ad, considering what a loyal customer I have been.

  11. I always find that reaction puzzling. I neither hate people because they have money nor love them for the same reason. Why would I?

    If they want everyone to know they have money or influence, they tend to be insufferable.

    I like Bill Clinton, but he needs to stop pimping himself out.

  12. How I wish such a big desi-tinged story did not feature someone called , simply, Vin. Chance lost.

  13. I like Bill Clinton, but he needs to stop pimping himself out.

    Stop pimping himself out ? Why ? The pimping thing has been raking it in for Bubba:

    After Mining Deal, Financier Donated to Clinton Late on Sept. 6, 2005, a private plane carrying the Canadian mining financier Frank Giustra touched down in Almaty, a ruggedly picturesque city in southeast Kazakhstan. Several hundred miles to the west a fortune awaited: highly coveted deposits of uranium that could fuel nuclear reactors around the world. And Mr. Giustra was in hot pursuit of an exclusive deal to tap them. Accompanying Mr. Giustra on his luxuriously appointed MD-87 jet that day was a former president of the United States, Bill Clinton. Mr. Nazarbayev walked away from the table with a propaganda coup, after Mr. Clinton expressed enthusiastic support for the Kazakh leader’s bid to head an international organization that monitors elections and supports democracy. Mr. Clinton’s public declaration undercut both American foreign policy and sharp criticism of Kazakhstan’s poor human rights record by, among others, Mr. Clinton’s wife, Senator Hillary Rodham Clinton of New York. Just months after the Kazakh pact was finalized, Mr. Clinton’s charitable foundation received its own windfall: a $31.3 million donation from Mr. Giustra that had remained a secret until he acknowledged it last month. The gift, combined with Mr. Giustra’s more recent and public pledge to give the William J. Clinton Foundation an additional $100 million, secured Mr. Giustra a place in Mr. Clinton’s inner circle, an exclusive club of wealthy entrepreneurs in which friendship with the former president has its privileges. http://www.nytimes.com/2008/01/31/us/politics/31donor.html?ref=todayspaper&pagewanted=all

    If there is one talent Bill has, it is being a pimp for the right amount of money.

  14. i don’t see why the ad is cringe-worthy.. is it the Chinese accent? But then, pandas are native to china

  15. The following is from the Wikipaedia entry of Vinod Gupta: In 1992, Vinod Gupta gave $2 million to IIT Kharagpur for setting up the Vinod Gupta School of Management, and later $1 million for Rajiv Gandhi School of Intellectual Property Law Kharagpur.

    While the amounts may not be eye-catching from the US philanthropic point of view, Vinod was a pioneer. If I am not mistaken, Vinod’s gift was the first such gift to any of the IITs, and after his gifts many others gave similar gifts to other IITs and other specialized schools came up in the other IITs. (Example: http://www.it.iitb.ac.in/about/; http://www.som.iitb.ac.in/ etc.) My guess is prior to Vinod, no on else had donated such a large amount to any of the IITs.

    Also, Vinod’s gift enabled the creation of a school of management in the IITs for the first time and led to other IITs creating their own business schools. Same is true about “law” as a discipline entering the IITs.

    ps: I am in no way connected to Vinod; just someone grateful to him fori starngt, in India, the trend of donating big to ones alma mater.

  16. Side note: See Times story about the terrible ads. Choice quote:

    Mr. Gupta said he planned to keep running the other Salesgenie commercial, featuring an animated salesman named Ramesh who speaks with an Indian or other South Asian accent. The reason, Mr. Gupta said, was that “more people seem upset about the pandas than Ramesh.” “People have been making fun of my accent for years,” said Mr. Gupta, who described himself in the interview as half-Indian and half-Jewish. “And I love it.”
  17. Mr. Gupta looks like yet another “go-getting entrepreneur” who “does it all”. One day his work will achieve sophistication of used car dealership ads. Thank god I quit advertising many years ago.

  18. Just read V V Ganeshnathan’s NYT link. ‘What offended me was Bud Light… Very stereotyped,’ sprach Vin Gupta. He’s right. Why spend “millions of dollars” for a crappy ad when you can make one yourself?

  19. I showed both ads to my ESL News class (most are upper college level from Brazil) and they were vocally shocked. The Koreans just sat there stunned. Most agreed both ads were racists with all of them agreeing that both ads left them very uncomfortable.

  20. Most agreed both ads were racists with all of them agreeing that both ads left them very uncomfortable.

    Is it racist because the students were personally insulted or because the siren call of communal virtuosity was too hard to resist?

    I’ve commented on this elsewhere.

    that the top salesguy in a compny is an accented desi is a pretty huge ethnic stereotype busting btw.
    the key thing is the chinese is a successful entrepreneur and the indian is a sales guy who’s usually alphadog type of person in an org. this is not unknow. even local ikea radio ads poke fun at the svedish accent.

    I dont think these are racist [though they are tacky]. If it doesnt work for you, dont buy the lists – but I actually thought they did a good job positioning 1st gens. their target market is the entrepreneur*, not welfare recipients or social scientists. all this is saying that info-usa levels the playing field.

    *point of note – i didnt hear floridian say he’s going to be canceling his list listsubs anytime soon.

  21. I don’t like Bill, I don’t like Hillary, and Vin Gupta seems a smarmy type to me.

    But the ad itself? I watched it twice. It does exploit the Indian sterotype, rather along the lines of Apu in the The Simpsons. But offensive? I think if you are thin-skinned you may feel that way, but I feel there are many lurking who think this is overblown.

    Do you think Apu is offensive? What about Peter Sellers in The Party ? Tastes differ…

    Anyone else feel we are are over-reacting ?

  22. i find apu to be hilarious– but the simpsons are equal opportunity! they spare no one, dominant culture, sub culture, etc.

    these ads were dumb, ineffective, and insensitive what was up with ramesh having 8 children?

  23. As a marketer I’ve been on the receiving end of all manner of awful advertising from InfoUSA, much of it seemingly written by or definitely featuring the smug mug of Mr. Gupta. I don’t remember any of it being particularly offensive to any particular groups, except perhaps advertisers, copywriters, graphic designers and photographers. In fact, I did buy the company’s services once or twice. The results? Unexceptional. Maybe I should try them again now that they’ve acquired a wifeload of juicy new democratic money names.

    The discussion of the ugliness (racial, aesthetic or otherwise) of the ads is obscuring what I take to be Ennis’ real issue — is the mutual back-scratching of Gupta and the Clintons no big deal, illegal, improper or just icky, and is it the small visible tip of an iceberg of fishy activity? I imagine that if InfoUSA had sold a campaign $800k worth of lists for only $8k, the campaign finance people would be interested in the $792k gift, but what’s the deal the other way around? Does anybody regulate political campaigns’ gifts back to donors? If a future Clinton administration were to pursue a legislative agenda that benefits the direct marketing industry, that would be more or less the way the game is played, wouldn’t it?

    When you’re done burnishing the brown off this story, I think you’ll find its mostly about green.

  24. Remember this cringe-worthy Superbowl ad

    No the only thing I remember from that night is…….Giants 17 Pats 14!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  25. 34 Suki Dillon: “No the only thing I remember from that night is…….Giants 17 Pats 14”

    Amazing, wasn’t it? Tom Brady shut down by a defense? As they say in football, “Any given Sunday…”

    32 Limeduck: “Ennis’ real issue — is the mutual back-scratching of Gupta and the Clintons no big deal, illegal, improper or just icky, and is it the small visible tip of an iceberg of fishy activity?”

    Hey, fellow marketer!

    My views on the impropriety aspect of the story: 1. Mutual back scratching is built into and duly sanctioned by our democratic process, like it or not. Whether it is one-on-one, as in the Clinton-Gupta case, or institutionalized as in the case of such powerful lobbies as the Teamsters, realtors, gun owners, even teachers, the giving of campaign contributions, votes and other support in return for some concessions is exactly how our democratic system works. In other words, if you don’t like something in our country, you can change it. But it will cost you. Fair enough? Oh, you don’t have the money? Perhaps you belong to some union or association. Don’t worry, a portion of your annual dues is already earmarked for lobbying and buying the politicians who will work on your behalf. What, no money and no association? Then, my friend, you are outta luck.

    1. The Clinton connection per se is not the real reason for the shareholders’ lawsuit against Gupta. The suit was initiated by Dolphin Limited Partnership, an activist hedge fund that owns 3.6% of infoUSA, claiming wanton fiscal irresponsibility by Gupta and the board. Gupta could have lavished millions of dollars of his own money on the Clintons without any censure, but the assets of a public corporation are not his to squander on his personal political agendas, and the Clintons are his personal agenda. He had funded them way before infoUSA went public, but he forgot to make the necessary change in his corporate check-cutting practices after going public.

    Is activism good for the common people? The corporate raiders and funds that take huge positions in certain stocks don’t exactly do it for you and me, but nobody can deny that they bring arrogant, irresponsible and financially wasteful boards and CEO’s in line with their activism.

    Perhaps none of Gupta’s fiscal philandering at his company’s expense significantly depressed the stock. But the average Joe that invests in stocks to make a little extra money to send his son to college or buy braces for his little girl deserves a lot better than this.

    Equity markets in today’s economy are no longer the playground of the rich. With almost 60% of the households today vested in the markets (from a mere 19% in the early 80’s), the equity markets or, in other words, the public corporations, now belong to the common people. Therefore, there has to be zero tolerance for the likes of Gupta if we are going to keep the game clean and safe for us common folks. He doesn’t need to be thrown in jail for this. He and his board cronies simply have to reimburse the company for their Clinton related expenditures.

  26. And the point is….?

    And besides, one Desi’s cringeworthy ad is another’s creative genius at work.

  27. The panda ad ranked 45th out of 55 ads shown during the Super Bowl. The other Salesgenie ad, with a salesman who thinks he is going to get fired, ranked 50th

    The most shocking part of this story is that there were worse ads – which ones?

  28. Amazing, wasn’t it? Tom Brady shut down by a defense? As they say in football, “Any given Sunday…”

    I think the fact that the Pats were unable to videotape the Giants from the 1st meeting on Dec 28, meant they could not have the advantage that they had in there other super bowls. I guess they are not the same team with out the illegal videotape advantage.