21st Century Affiliate Marketing

News and views about affiliate marketing in the 21st century

Lynn Terry blogs about the FTC and Social Media Marketing

May 20th, 2009 by John Dilbeck

For the first time in several weeks, I fired up my newsreader and started catching up on what my friends have been blogging about recently.

One of the first things that caught my eye was Lynn Terry’s post, FTC to Regulate Social Media Marketing.

She did a good job linking to information about this, so I won’t repeat what she said. Click the link, above, to read her post; it will open in a new window.

I think it’s about time that the FTC started to crack down on deceptive advertising and claims, and the new emphasis on “atypical results” is a good thing, too.

Although I can’t show you specific statistics to back up what I’m about to say, it’s common knowledge that over 90% of affiliate marketers never earn anything, or at least earn very little.

Yet, there are people and websites out there that claim that it’s the easiest thing in the world to join a few affiliate programs, set up a blog, and start earning thousands of dollars.

This claim is simply not true.

Yes, there are a few people who earn thousands of dollars every month through affiliate marketing, but they are the exceptions - they are the people who enjoy “atypical results.”

Perhaps it was a matter of timing. Maybe they got in at the right time.

Maybe they had more experience in marketing and advertising than most of us.

Who knows why they were successful.

Online marketing is still not as easy as some would paint it.

So, I’m hoping that the FTC does crack down on all the hype and scams that are floating around.

On the other hand, it worries me a bit that they may go too far.

Some of us try very hard to have a good knowledge of what we recommend. I am a satisfied customer of the products and services I recommend the most, but I can’t be 100% sure that I haven’t said something, somewhere, sometime, that may come back to bite me.

What about you?

Have you ever taken someone else’s word about a product and recommended it with little or no personal experience?

I don’t think you want to open yourself up to all the problems that will arise when the FTC cracks down on blogs and social networking sites.

I am far from getting rich, and my affiliate marketing income has dropped dramatically since last September, but I’m in this for the long haul and look forward to the months ahead when my revenue will rise, again.

I feel that I’ve been ethical and honest about the things I promote, but I look back and see that some things I liked a few years ago no longer look as good as they did then.

Does this mean that I have to find all my websites and everything I’ve ever published and see if they need to be modified and/or deleted?

I really don’t know.

Lynn’s post has given me something to seriously think about now that I’m getting back to work.

What do you think?

Act on your dream!

JD

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This entry was posted on Wednesday, May 20th, 2009 at 5:13 pm and is filed under Advertising and Marketing, Affiliate Marketing, Blogging, Social Networking. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

24 responses about “Lynn Terry blogs about the FTC and Social Media Marketing”

  1. Dennis Edell said:

    I think yopu’re both right. I certainly think the BS should be squashed without prejudice, but I agree with Lynns fears as well…

    I love products A, I did make 3 trillion dollars with products A, I can’t tell anyone about it??

    I think not.

    The one thing I heard a while ago, before Lynn’s article was the new rulings would ensure testimonials included good and not so good reportings.

    While I think this is OK in an honesty first way, is there such a thing as a “bad testimonial” or will we have to change the wording…know what I mean?

    Dennis Edell´s last blog post..12 Tips To Increase Sales On Your E-commerce Website

  2. Mitch said:

    I have the same beliefs you have, John. On the one hand, I hate guys who are always telling everyone how great something is when they’re just pasting in what everyone else has written already. I come across that all the time, and I’m not sure if those are paid ads or just laziness.

    Then there are the paid ads, which you know I’m against because I think it messes up a person’s credibility, as I’ve yet to see anyone give a paid review a bad review.

    Then I have the other side, as I read the article elsewhere. They specifically mentioned sellers sending free stuff to bloggers in hope that they’ll write about the product. Well, I’ve done that a few times, but I didn’t ask anyone to send me anything, and if I liked it and wrote about it, who does it harm? Is it paid advertising? I don’t think so, because if I didn’t like it, I probably wouldn’t write about it, but I might, and someone else might, and I’d hate to think that the FTC could come down on me for doing it, though the article did say they wanted disclosure, which I always give.

    And the final piece is that I do write reviews of stuff all the time, some good and some bad. I don’t want either the FTC or Google, who’s also mentioned in the article, coming back at me and saying “we don’t trust your motives in your post” and deciding to penalize me in some fashion for it. That’s when big government can go to far, in my opinion.

    And there you go; a comment worthy of you! :-)
    Mitch´s last blog post..Viewing Adsense Information Under Google Analytics

  3. John Dilbeck said:

    Good afternoon, Dennis.

    I agree with what you’re saying.

    Who defines “atypical results” and how does the FTC or Google, or anyone else, know our motives and what we’re thinking when we write about something.

    How do they know about our experience, knowledge, level of commitment, and how much action we’ve taken?

    These things are bothersome.

    Still, reducing the hype and scams is a worthy goal, but like Lynn, I think it may cause problems with ethical marketers, too.

    As far as what do we call a “bad testimonial,” that’s a good question. “Feedback” doesn’t sound right, nor does anything else I can think of right now.

    I’ve never been a big user of testimonials in the past, but the new site I’m planning will have testimonials featured prominently. Fortunately, this site will be centered around local businesses and not online marketing, so it won’t be the types of testimonials we may be talking about here.

    I’m still thinking about all this.

    Act on your dream!

    JD

  4. John Dilbeck said:

    Good afternoon, Mitch.

    Thanks for the great comment! I’m afraid I’m starting to rub off on you in terms of long comments. ;)

    I have mixed feelings about paid ads.

    When they are clearly advertisements, I don’t have a problem with them. After all, that’s one of the main features of modern commerce. Without paid ads, there would be no newspapers or magazines and I don’t see what makes blogs and social networks any different.

    On the other hand, when the ad is confused with the editorial content, then it does become problematic.

    I don’t think blogs and social networks can be held to the same ethical standards as newspapers, however, since most of us are not journalists. Still, it’s something to examine and think about.

    I don’t think there’s anything wrong with writing about free stuff that is sent to us, as long as we’re honest in our reviews.

    Like you, I would be more inclined not to write about a product I didn’t like, rather than writing a bad review, but if it’s really bad, I’d probably say so.

    The trouble with bad reviews is that some people like to litigate everything and it’s no fun getting sued for stating your honest opinion.

    I’m sure that I have not written about some things because I didn’t want the hassle. I can’t think of a specific example, however.

    As far as disclosure is concerned, I’m trying to be more transparent and, if I were to review a freebie, I’d clearly state that in the opening paragraph.

    Yes. How can Google or the FTC know our motives? That’s where both government and corporations can go too far.

    Act on your dream!

    JD

  5. Mitch said:

    Hi John,

    Having said I’d hate writing a bad review if someone sent me something, I’m about to write kind of a mixed review on just that very thing on my business blog. It’s got some positives, and some things I don’t like. So, this will definitely be somewhat interesting.

    Mitch´s last blog post..Best Free Software

  6. John Dilbeck said:

    Good afternoon, Mitch,

    I think most reviews are mixed reviews, don’t you?

    I can’t think of anything I’ve written about that didn’t have some features or aspects I didn’t like.

    I would be much more likely to review something (whether I got a freebie or not, or whether I was getting a potential affiliate commission or not) if I liked it much more than I disliked it, rather than if I mostly did not like it.

    In other words, I want to focus my time and efforts on writing about the (mostly) good products rather than the (mostly) bad products.

    Whenever I read a report or review that is glowingly positive with no mention of negatives or what could be improved, I’m much less inclined to give it any credence.

    If I read a review that is all negative, I wonder what the writer’s incentive was. Why bother?

    So, what did you review?

    Act on your dream!

    JD

  7. Mitch said:

    Actually John, I haven’t written the review yet; that shows how troubled I may be about it.

    No, I don’t believe most reviews are mixed. I think most of the time, when you read a review, it’s extraordinarily positive, which is why I think most of them are fake. Look at all the new product launches by the “gurus”. There isn’t a negative in the bunch, because all of them know they have money coming if they can stick with the party line.

    Remember the launch of Success University? For months, I couldn’t find a negative review, so I signed up, since at the time they had a special two week deal. I was so disappointed, for a few reasons, that I wrote a review about it for my Reviews site, which you can see here: http://www.reviewsofeverything.info/successu.html. Even now, a couple of years later, it’s hard to find a bad review, but I know I’m not the only person who thought this wasn’t all that great, and for the money they’re asking for on a monthly basis, I’m just surprised that there aren’t more bad reviews.

    That’s my point here; maybe some people feel some negatives about a product, but so many more are hoping to make money from that same product that they keep silent on those things. I won’t, and neither will you.

    Mitch´s last blog post..Best Free Software Two

  8. John Dilbeck said:

    Good afternoon, Mitch.

    OK. I see what you’re saying.

    I think both of us are agreeing, but we’re using different terminology.

    When I read something that is entirely positive (or negative), I don’t think of it as a review. I call that a pitch. And I fully agree that the majority of pitches are almost entirely positive for the reasons you mention: the possibility of the writer to earn something from it.

    I read your review of Success University and agree with you. I tried the two-week trial and immediately did not like it and canceled.

    However, unlike you, I didn’t bother to write about it. Perhaps I should have.

    Thanks.

    Act on your dream!

    JD

  9. Mitch said:

    Okay, I get where you’re coming from also, John; differences in terminology.

    I write about lots of things like this, by the way, fodder comes from so many places, which is probably why I’m able to write as much as I do.

    Mitch´s last blog post..Zoomerang

  10. Dennis Edell said:

    Sooo OK, are you both saying it is not possible to find an honest review that is all positive?

    Hello FTC. LOL

    Dennis Edell´s last blog post..Would Even The Slightest Hint Of Porn Stop You From Advertising?

  11. Mitch said:

    Certainly not, Dennis. What I am saying is that if you see the same exact review over and over, it’s probably false.

    Mitch´s last blog post..Creative Content Marketing

  12. John Dilbeck said:

    Good morning, Dennis.

    I can hypothetically imagine an all-positive review, but think it is unlikely if the writer has done his/her job.

    Maybe some of us are more positive than others and are more likely to overlook potential problems with a product.

    Maybe some of us have been trained for decades to look for problems (and their solutions), so we’re more likely to spot things that are detrimental to a product.

    As a programmer and analyst, it has been my job to anticipate, find, and fix problems in a variety of systems and I think that carries over into my style of reviewing something.

    Others have different experiences, personalities, and writing styles.

    Still, with all that said, if I read several reviews of the same product and they are all glowingly positive without mentioning anything on the downside, I would be less inclined to trust them (and their authors) than I would a review that is more balanced.

    Even products and services that I love, use, and happily recommend, such as Macintosh computers, Aweber, and Site Build It! have their downsides and are not a proper fit for everyone.

    I honestly cannot think of a single product where I could write a completely positive review.

    Can you?

    Act on your dream!

    JD

  13. Dennis Edell said:

    @Mitch - oh you mean like the same handful of moro - err - gurus giving testimonials on each others products; totally agree there. ;)
    Dennis Edell´s last blog post..Would Even The Slightest Hint Of Porn Stop You From Advertising?

  14. Dennis Edell said:

    @John - You raise some very good points. If it’s anything technical, like software or anything of that nature; nothing but glowing reviews would be very strange indeed.

    Personally speaking, I always try to give the good bad and UGLY throughout. I also state this very clearly on my “wanna get reviewed” page when I had one up. lol. making sure people knew what they were in for.

    That said, to answer your question, yes to date I believe I’ve given two all positive reviews…

    1. A blog review. Someone in the comments actually did call me on it. even though he was pretty much kidding, I felt it prudent to respond; something to the effect of, “Ok I didn’t really like the header font styles he used on some sidebar widgets…but a tad too nit-picky too mention. :)

    2. An eBook. First I made it CRYSTAL CLEAR I did not finish the entire 400+page book before reviewing (understandable I think, lol).

    Considering it’s an “interview” style book, the review was basically on the premise of the whole thing anyway, which I happened to find extraordinary.

    Basically there is definitely a difference in the style of product/service being reviewed.

    Dennis Edell´s last blog post..Would Even The Slightest Hint Of Porn Stop You From Advertising?

  15. Dennis Edell said:

    I meant to add, like I said, I give good bad and ugly when applicable for sure…but as I also stated, it won’t be pick pick pick; it must really be worth mentioning, otherwise it’s no help to anyone.

    Dennis Edell´s last blog post..Would Even The Slightest Hint Of Porn Stop You From Advertising?

  16. John Dilbeck said:

    Good morning, Dennis.

    Thanks for the examples of all positive reviews.

    I agree with your review of Yan’s blog and I liked the way you handled it when questioned about an all-positive review.

    I enjoyed reading your review of Pete’s book and all the comments on it. It was clear from the start that you got a freebie to review and that you’d be earning an affiliate commission if it sold (as well as giving a 25% rebate).

    Since you believed in the quality of the book and what was in it, I don’t see a problem with it being all positive, but I still suspect that some of the advice was not up to par with what other contributors submitted.

    Still, in both cases, I agree that there’s no reason to nit-pick and find problems when you really don’t think they’re detrimental to the product.

    I also agree that a review should be useful and unnecessary criticism may not be.

    Thanks for the examples. I appreciate it.

    I also think there is a big difference between an ebook with basically 100 marketing ideas for a buck each and a service that we may use as a central part of our business and for which we’ll pay hundreds of dollars per year (such as Aweber).

    As usual, your comments prove to be thought provoking.

    Act on your dream!

    JD

  17. Dennis Edell said:

    “but I still suspect that some of the advice was not up to par with what other contributors submitted.”

    Marketers within the book or other reviewers like me?

    If you mean, some of the “tips” aren’t s good as others, doesn’t that fall under, duh! LOL Seriously though, all 100 can’t be expected to make everyone rich….is that really something to write in the review even if I had read the entire book?

    Dennis Edell´s last blog post..Would Even The Slightest Hint Of Porn Stop You From Advertising?

  18. John Dilbeck said:

    Good afternoon, Dennis.

    I was referring to the marketers who contributed to the book, but, in fact, I was mostly pulling your leg and was smiling as I wrote it.

    I should have put in a smiley face winking at you.

    ;)

    Of course it’s not necessary to compare all of them in a short review.

    Maybe I need to add a new “Duh!” category to this blog. I have a gift for stating the blatantly obvious, sometimes.

    (This time I’m sitting here with a lop-sided silly grin and don’t know the smiley to show it.)

    Act on your dream!

    JD

  19. Dennis Edell said:

    LOL I gotcha, no worries.;)

    Dennis Edell´s last blog post..Would Even The Slightest Hint Of Porn Stop You From Advertising?

  20. John Dilbeck said:

    Good morning,

    In this thread, we’ve talked about reviews and what I call pitches and how I differentiate between the two.

    Today, I ran across what I consider to be a good, balanced review, written by someone who has personal experience with the product and who talks about both the good and bad aspects of it.

    I’m a regular visitor to Steve Pavlina’s site. I’m a real fan of his balanced reviews of the products and services he recommends.

    Yesterday, he posted his Amazon Kindle Review and I think this is a model for a good, balanced review of a product.

    Yes, he’ll get paid if someone purchases from his affiliate links, but he also talks about why some may want to buy the product and others may not.

    He also demonstrates his personal knowledge and use of the product for some time.

    While many of us are aware of the Kindle, most of us don’t have much (or any) experience with actually using it.

    Which do you think would be more effective in selling Kindles and collecting affiliate commissions? Someone who writes a generic “review” with no experience, or Steve Pavlina’s review which demonstrates in-depth knowledge of the product?

    Act on your dream!

    JD

  21. Mitch said:

    I think someone writing about a product they’ve actually used it always stronger.

    However, I have to say I stopped reading Pavlina’s blog once he started his series on juicing; just wasn’t interested anymore.

    Mitch´s last blog post..Archie’s Picking A Bride!

  22. John Dilbeck said:

    Good morning, Mitch.

    I think Steve Pavlina is a very good model for how to build a high-traffic, high-profit site.

    If I remember correctly, he decided recently to remove Adsense from his site, even though he was making thousands of dollars every month from their ads.

    I agree that he writes about things I find to be uninteresting, but I keep reading because he also writes some very interesting, helpful articles.

    I don’t have time to spend on his forum, but I drop in now and then to see what’s going on.

    I read his book a few months ago and I’ve been working on a review, but I’m still not ready to publish the review.

    My main reason for linking to his review is that I believe one high-quality, reasoned, balanced review such as Steve’s review of the Kindle, will be more effective and profitable than dozens of short blog posts or any pitch.

    While I don’t intend to follow his lead in eating raw foods and doing a lot of juicing, I admire his willingness to try something for 30 days to see how it affects him. If he feels better, he continues. If not, he’s off to something else. (That’s a superficial overview of my understanding of what he does.)

    Act on your dream!

    JD

  23. Mitch said:

    John,

    You asked me about a particular review I’d said I was going to write; I’ve written it: http://www.ttmitchellconsulting.com/Mitchblog/wisdom-of-the-flying-pig-a-review/

    Mitch´s last blog post..Best Free Software

  24. John Dilbeck said:

    Good morning, Mitch.

    I think that’s a well-written review.

    While you end up recommending the book, you’re honest about what you didn’t like about it and why that’s important to you, but maybe not so important to someone else.

    Nicely done.

    Act on your dream!

    JD

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