This is a question regarding the new FTC ruling:
Matt:
I have not had much to say – I have been trying to figure out this ‘Internet Marketing’ thing. I have listened to many webinar “I have the answer . . .” type of thing. I think that I have just about got the answers and now the FTC ruling comes out. So I have a question for you – “the Boss”!
I have read a few blog posts relating to the subject. The just of their opinion is “no problem”! I don’t know. If you have a chance could I get your take on the subject?
1. Should I be concerned?
2. What should I do?
3. How is this going to affect ClickBank Affiliate Marketing program?
4. Is there additional information that you recommend that should be added to my disclaimer?
5. Is there any other questions that I should ask you that I did not ask about this issue?
I know you have the answers! I was very proud of your position regarding “State Sales Taxes”.
Thank you for your time and your help,
CBengine User
The FTC Ruling:
Under the revised Guides, advertisements that feature a consumer and convey his or her experience with a product or service as typical when that is not the case will be required to clearly disclose the results that consumers can generally expect. In contrast to the 1980 version of the Guides – which allowed advertisers to describe unusual results in a testimonial as long as they included a disclaimer such as “results not typical” – the revised Guides no longer contain this safe harbor.
The revised Guides also add new examples to illustrate the long standing principle that “material connections” (sometimes payments or free products) between advertisers and endorsers – connections that consumers would not expect – must be disclosed. These examples address what constitutes an endorsement when the message is conveyed by bloggers or other “word-of-mouth” marketers. The revised Guides specify that while decisions will be reached on a case-by-case basis, the post of a blogger who receives cash or in-kind payment to review a product is considered an endorsement. Thus, bloggers who make an endorsement must disclose the material connections they share with the seller of the product or service. Likewise, if a company refers in an advertisement to the findings of a research organization that conducted research sponsored by the company, the advertisement must disclose the connection between the advertiser and the research organization. And a paid endorsement – like any other advertisement – is deceptive if it makes false or misleading claims.
For the full text of the press release go to http://ftc.gov/opa/2009/10/endortest.shtm
For the text of the Federal ruling (if you want to learn the specific ruling) click here for the pdf
http://ftc.gov/os/2009/10/091005endorsementguidesfnnotice.pdf
My answers:
1) Should I be concerned?
I haven't delved too deeply into this subject because I personally don't use very many testimonials in my products, nor do I participate in fake blogs, or fake "newspaper" sites. (I think these are the sites the FTC is really trying to target) The other day I was surfing the Boise Weekly (local independent paper in Boise) and saw an ad for Twitter jobs where people could earn $75 per hour. I assumed it was a Twitter advertisement as the banner was using Twitter's logo and color scheme. Instead, I landed on The San Diego Herald News. It took me a moment, but I finally realized it was a fake newspaper story regarding a couple who had used some such product to make $300 a day. It came with fake testimonials, etc. At first I had to chuckle because it had actually fooled me. At first glance I thought it was a real newspaper story. I'm willing to bet this landing page HAULS it in sales-wise. People still largely trust newspapers and if they're doing a story about a local internet marketing success, there must be something to it, right? Especially if the local newspaper has taken the time to report on it.
I'm all for creative landing pages, but I think fake newspapers and fake blogs cross the line and I won't feel bad when they're gone or at least properly labeled as to what they are.
2) What should I do?
Unless this directly affects you (i.e., you use fake newspaper and blog sites, or have specifically detailed results testimonials), I wouldn't sweat it. The key to internet marketing success is to find a good niche, create quality content and STICK WITH IT. The slow, hard way is the best way. If you use testimonials and you can't show what AVERAGE results are, then simply don't state specific details in testimonials. Keep it generalized: "This is a great product. I learned a lot!" This will keep you "safe harbor", as they say.
3) How is this going to affect ClickBank Affiliate Marketing program?
I think marketers will still be able to have specific details in testimonials, but they'll need to accompany those with AVERAGE RESULTS it looks like. Interesting enough, I tried to state average results with my VIRAL MEDIA CASH product when I launched it and ClickBank made me take it out. So, ClickBank will have to change that policy and let vendor’s state average results. You’ll probably see more generalized testimonials, none at all, or the sites will have to rely more on author results.
4) Is there additional information that you recommend that should be added to my disclaimer?
Read the FTC links and COMPLY would be my advice.
5) Is there any other questions that I should ask you that I did not ask about this issue?
Let me say one more thing. There are a lot of products on ClickBank making big claims. Do I think they're all lies? No. I can tell you there are people making huge sums of money on ClickBank and they're doing it honestly. There are people who follow programs and make big $$. There are also a "middle class" of CB marketers who are making comfortable, average livings following programs. Are there a lot B.S. sites? YES. It's often hard to weed them out. But the beauty of CB is that if you're not happy, you can get a refund. It's impossible to get FULLY scammed. The most you lose is the time it took you to purchase and review the product.
ClickBank represents the future of publishing. We're pioneers and this niche will only get better and better. I'm optimistic about ClickBank. FTC ruling or not, I see nothing but growth.
However, I see a lot of new CB marketers buy ONE or TWO information products and expect they can implement them, kick back and rake in tens of thousands of dollars. This is NOT the way to approach investing in any HOW TO information product. Instead, look at is as investing in information that you simply add to your hopefully ever-growing knowledge base. I never follow a program to the T... I simply purchase it, mine it for unique ideas and cobble that data to what's already in my head. I've been planning to do an article about creating an information budget which I think is just as important for us information economy marketers as having a marketing budget. I won't tell you how much, but I spend quite a bit of money buying info products. I maybe return one in ten because they’re poorly written, falsely packaged or it’s so basic that it’s useless to me. I don't implement every product I buy... instead, as said, I suck the information out of them. I better educate myself. I might take one idea from a system and combine it with another idea from another system. If I simply get one or two good ideas out of a book, learn something I didn't know, I find it worth the $30-100 I spent. I see information as a hard cost of being an affiliate marketer.
What I'm trying to say... is that I would IGNORE the wild claims many of these sites make... see them as BEST CASE SCENARIOS and instead, if they look interesting, you feel like you could learn something, purchase it with that mindset.
I hope that makes sense. If anybody knows more about this ruling, please add to my thoughts in the comments.
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