FTC Declares No More Testimonials - Massive Impact For Internet Marketers

Summary: New FTC guidelines are a potential killer for testimonials within the sites of home business owners.
Posted: Thursday 15th October 2009, 14:42:34

Now let's get cracking! Tim Lowe and I have been chatting about the shenanigans going in the the USA at present. No doubt we'll get a taste in the UK at some time in the future, but anyway, Tim set me a task to research for our students and so here's what I've discovered.
Just about everyone I have spoken to so far, thinks that the new FTC guidelines are focused on bringing a halt to those nasty nasty fake little blog sites that all of us serious bloggers just hate.....aaaaarghhhhhh - good to get it out of my system!
Now...I've just realized I've not finished.... I am talking about those “bloggers” that only exist in the deep recesses of our imagination because THEY ARE NOT REAL... it’s just some made up story to push a dirty little MLM offer?
Here are fake lists of various blogs that I uncovered:
Fake weight loss blogs!
http://www.weightlossweapons.com/blog/weight-loss-scam-sites/
Fake “Make Money” blogs!
http://workathometruth.com/classifieds/m-fake-mon/
Now here's the punch line....every body who is telling you that the
FTC guidelines are only to crack down on these despicable
individuals who disrupt every home business opportunity imaginable...
Are So Wrong.
Now I am going to do the best my little brain will do, which is not that good to explain the TRUTH of the situation.:
First things first. If you are getting paid to sell something on a blog of course you should make that perfectly clear. In fact my position would be let's keep blogs free of selling. Now I know I have just a little Contextual advertising on my site courtesy of AdSense and that's fine....but let blogs be what blogs were invented to be....genuine, no pitches, relevant, interesting content.
Some would say, just mention it in the Terms and Conditions, but I would go further and be explicit, perhaps for example and I've developed this approach from extensive discussions with my friend Tim Lowe, who is one of the most successful Internet Marketers in Europe. So just take this example, “If you decide to get this thingamigig, first, please click on the link below because I do earn a small commission which I hope one day will enable me to buy that new 140" plasma for my film room" (Don't forget what I said at the start. Get some real advice from a lawyer and realize you have to eat the fish and spit out the bones with my little real-world summary).
I for one am absolutely convinced that as a blogger talking to other bloggers real marketers with tons of home business ideas like you and me will find it a breeze to comply with the FTC.
Now Let's Cut To The Chase....Here's The Scary Stuff!
These guidelines (I only wish they were just GUIDELINES) are really really serious and way more so than some little blog thing.
They extend to and expand to encompass EXACTLY HOW you can use testimonials …and I believe that this could well change how we all do business FOREVER!
Here’s my take on the guidelines:
Let’s say you sell an Weight Loss DVD.
And let’s say you’ve got a customer - I know of a real one via my friend Tim Lowe - and let's just imagine this customer, I am going to call her Jane followed the course exactly as she should, got her mind fixed in terms of her relationship with food just as we intended, and lost 154 pounds.
Now, let’s say Jane wrote you a testimonial and said “I lost 154 pounds (which she did, which is 11 stone in UK money) thanks to your course!”.
All fine and dandy and straight forward so far right?
Before these guidelines were released like the hounds of hell.... you could be completely safe by simply putting a typical boiler plate clause such as “these results are not typical” warning disclaimer on your site. I do it, you do it, we've all done it forever!
So far so good....or so you would think...
Here’s the new pivotal phrase that we all now need to be aware of:
- "...must clearly disclose the results that consumers can generally expect..."
So taking my real life example of Jane and her 154lb weight loss you
have to add something extra now, each and every time, something like:
These results are not typical. The typical user never even opens the packaging on this course, they just put it on the book shelf to gather dust.
Oh and I forgot to say...even that might not be quite enough “the typical never even opens the packaging on this course.." because the FTC I am pretty sure the FTC would probably argue that …well, you’re implying that therefore all anyone has to do is put the course on the shelf and they'll use 154 lbs - not sir can't have that, no sire not at all"
And as one little Irish comedian in Europe always says....."And
there's more..." and they all affect all of our home business
opportunities, so read on and take action!
You see the FTC guidelines that are pounding the streets of the web right now, slavvering with a various appetite, ready to consume all within their path, are likely to make the argument that that if you say Jane lost 154 pounds, the FTC will view this as you saying the TYPICAL USER will lose 154 pounds. I know that sounds ridiculous, but that is increasingly the view of the great and the good within the IM industry.
And if you don’t have signed, sealed, notarized, locked, vaulted and cast iron proof that they will each lose 154lbs, I better start baking a cake with a hair pin inside it, to give you at least a chance of getting out of prison my friend.
So what the hec does this mean to you? - Hold on and I'll tell you.
Here's the bottom line, if you use a testimonial that shows someone really experiencing exceptional results you just cannot put in the usual little "these results are not typical" disclaimer. No sir!
You absolutely, each and every time, have to say something like “These results not typical. The typical user experiences 123lb of weight gain!!.”
And if you don’t know what the typical user experiences and can demonstrate that with cast iron proof you must find out, set up a system and document it and be ready to produce it in court or just forget about using testimonials of this type for ever.
Now I want to reassure you that not ALL testimonials are this difficult to use. As far as I can understand it, you will not have to place any disclaimers if you’re using testimonials where your customers simply and generally say they love your product, think your great, or are delighted with their purchase.
Its the specifics that are going to get you into trouble if you keep using them....even though you know and I know they are real...
So what do I think you should do?
Follow the guidelines, perfectly and do not digress under any circumstances!! You have been warned.
Many marketers are going to plan for days on-end how to circumvent these new ruling and continue to make money on line, like they've always done.
My advice would be to just forget that approach. You simply cannot win this game! So, if you’re at all concerned that your testimonial will get you in trouble, don’t under any circumstances use it.
In my experience, if you care about your customer, create and deliver value well before the sale you will have customers a plenty and just keep selling forever.
When it comes to Internet Marketers we are so fortunate when we
set out or even teach how to make money online, because all you do is
build a list, provide constant great value for your subscribers for
free …and when you want to sell.. they won't need much convincing. And we can do all that from home, just like I do in my little shed in the back garden - ok it's not so little, but it's still at home and the lifestyle is great!
May your success be more than you can hold!
Kevinhttp://www.CambridgeBusinessAcademy.com
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