Full disclosure?

So, according to this article, America’s Federal Trade Commission allegedly plans to monitor blogs for payments. They probably want full disclosure of any compensation. And I'd want that, too, as a consumer. If someone's recommending something to me and they're going to be paid a commission out of it if I buy it on the strength of their recommendation, I'd kind of like to know that before I read their "review" of it. Wouldn't everyone? Otherwise you might feel pretty "deceived", no?

Conversations about stuff like this leave me with kind the same sort of feeling I get talking to some of the people struggling to build network marketing businesses, who are teaching a business-building system destined to fail, when they say stuff like "You sell the products by personal recommendation and it's exactly the same as recommending a movie or a restaurant"!

Hello? "Exactly the same?!" They conveniently ignore the fact that in one case you're getting paid for the recommendation and in the other you're not and the person you're talking to knows that.

Which is why, of course, it's not a duplicable system that works for many, because most people are understandably too embarrassed to do it, being fully aware that the people they're talking to will feel they're recommending it "just for payment" and it will undermine their relationship. Which it often will.

Consumers are misled and deceived if they're not told openly that your recommendation arises from a commercial incentive.

"But I want to be able to sound objective and impartial about it", to some people, is just another way of saying "I want to be able to fool people". It doesn't have to be, of course. And to those who examine it a little more deeply, this will actually be an advantage.

It's just like increased regulations in the network marketing industry: the people who complain about "nanny statism" and "interfering governments" and "too many regulations" are just missing an opportunity, because in the long run, "cleaning things up" can only be to the collective good of an entire industry. And that's a hugely significant issue to the average network marketer. If they only understood it more clearly, one of the main reasons they have difficulty building their businesses is the bad reputation (in some places more than in others) from which the "industry" suffers. And that's brought about - just as the worldwide recession was - primarily by failure of regulation.

People with "review-style blogs" who do negative reviews as well as positive ones, and are simply honest with their readers that they earn a commission on products sold through a link will have absolutely nothing to fear from the FTC or anyone else.

Another advantage of "rule changes" like this is that they tend to put everyone on a level playing-field, and gradually weed out the more obviously dishonest participants. It's good for everyone. And it doesn't hurt to use disclaimers when everyone has to use them.

Look on the bright side: half of Blogger and Wordpress might get shut down over this. Those who simply comply will really flourish and prosper.

Comments

[Joanne]

I so agree with you! It's said over and over again that recommending your products or company is no different that suggesting a movie or restaurant but as you point out it makes all the difference when there is a financial incentive involved. Yet so many network marketers continue to repeat this.