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Bloggers and Ethics

By JLP | October 5, 2006

There’s a very interesting story in the November issue of SmartMoney titled “Romancing the Bloggers” (sorry, although I received the magazine in the mail yesterday, there is no link yet). The story is about how companies are influencing blogger opinions by sending them free stuff to review. The article opens like this:

David Ponce has amassed a collection of tech toys that any gadget freak would envy: headphones with concert hall sound, high-tech underwear that regulates his body emperature, a watch that wakes him when it biorhythms align, a wireless weather station, even a $1,000 light saber with a 90-mile beam strong enough to burn through garbage bags. And thanks to his blog, he got it all for free. Companies hoping for a review constantly offer him expensive samples. “I’d never be able to afford the phone I’m talking to you on right now,” he says, referring to the $600 Nokia N91 that recenty arrived in the mail.

Ponce acknowledges that the 9,000 daily visitors to his blog, OhGizmo.com, probably don’t realize that his reviews are based on free merchandise. And yes, the arrangement bothers his conscience a bit, but he tries hard to be impartial. He criticized the headphones, for instance, and was planning to pan the Nokia phone: “It’s great as a music player, but it sucks as an actual phone,” he told SmartMoney. But that didn’t translate into the writeup. In his review posted days later, Ponce wrote that while “some features lack a little polish…the phone is worth its weight in gold.” Nokia must have been pleased.

Interesting…

The article then goes on to talk about how companies are salivating at the attention that they can get from “buzz-marketing.” Some are even creating fake blogs and are also posing as customers and leaving comments on boards, forums, and blogs all across the web. It’s a must read article and as soon as it is linkable, I’ll link to it.

What’s JLP’s Policy?

There was one time during tax season that I posted a press release for H&R Block and although I wasn’t paid to post the release, I did have a relatioship with H&R Block in which they were paying to advertise on my blog. The press release that I posted this past summer was done as a favor and I did not receive any sort of compensation (although it could lead to future advertising). That said, here’s my policy:

1. I WILL NOT ALLOW sponsored content. Sponsored content is content written by an outside source with links. The blogger is then paid to post the content. I don’t have a problem with this AS LONG as the reader is made aware of the fact that the article is paid content, which diminishes its value tremendously.

2. If I don’t believe it, I will not post it! In other words, you won’t find me espousing the benefits of a fee-ridden variable annuity just so I can court an advertiser.

3. MOST of the books I review are GIVEN to me by the publisher. That in no way impacts what I say about the book. When I write a review of a book, I usually list what I like about the book and what I don’t like about the book.

4. I NEVER get paid to link to another website inside a post UNLESS it is an Amazon link to a product like a book or the phone which I linked to above. And, with Amazon, I don’t earn anything until someone actually buys something.

5. The links under the “Sponsored Links” section at the very bottom of the page, are all paid links.

AllFinancialMatters is my blog and my opinion. My goal is to post objective content in a fun and interactive manner (I love comments because they really add to atmosphere of the site). And, like I said earlier, if I don’t think it is in my readers’ best interests, I will not post it. That’s a promise! Oh, and don’t worry, nobody is sending me a $600 cell phone!

Topics: Blogging | 4 Comments »


4 Responses to “Bloggers and Ethics”

  1. Financial Freedumb Says:
    October 5th, 2006 at 6:22 pm

    JLP, Interesting post! You know what’s interesting, awhile back when I was in college I was getting a bunch of free stuff for my game site. Then I wrote a flaming review of one of their controllers, and I never heard from them again. I learned a very important lesson…be impartial but be nice. I feel bad to this day, but the controller really was crappy.

  2. John M Says:
    October 6th, 2006 at 10:17 am

    I think the real question is what people’s expectations are when reading a blog. When I read a review from a magazine or newspaper, I am aware that it is likely that the author received a free sample of the product. Reviews on publications with advertisments are likely to be influenced on some level by the advertisers. With advertising being the sole source of revenue on most blogs, I would expect the influence of advertisers to be greater.

    I think most bloggers would not want to give a positive review for a product that was truly bad. The ethical dilema come from products that are not great, but good or mediocre. With Amazon ads there is not direct pressure from an advertiser to promote their product, yet you only get paid when someone buys a product, and therefore it is in your best interest to give a glowing review of the product. I do not believe that your reviews are tainted, but there is the potential.

    From time to time I have used my blog to advertise events and ventures where I have personal involvment. I think it is clear that I am advertising these events, but in the future I will make take more steps to make sure it is clear. I have not posted third party advertising, but personally see no problem with it as long as I make it clear that it is an advertisement.

  3. » Weekly Blog Round-Up on Consumerism Commentary: A Personal Finance Blog Says:
    October 6th, 2006 at 1:01 pm

    [...] AllFinancialMatters talks about bloggers and ethics and also is in the midst of the Bogleheads’ October Project. [...]

  4. Brent Says:
    October 6th, 2006 at 4:34 pm

    No kidding on romancing the bloggers. Check out the comments at the bottom of this post. Instead of emailing me, they pitched me right on my blog. Not just once, but twice…..

    http://www.zulit.com/2006/07/05/web-hosting-company-reviews/

    Note the comments by Christina and Laura. They want me to promote their hosting.

    “Is’nt that veird” — Goldmember.

    Brent

    PS – Disable link of course if you wish. Just put it up so you can see this company trying to entice.

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