Your testimonials and the new FTC rules

Since the FTC announced the new disclosure guidelines this month, there has been a buzz throughout the blogging community… some crying foul, some saying “about time!”, and others just plain confused.

While the new ruling [for the most part] affects bloggers who are reviewing or endorsing products, the FTC rules do not target them specifically, so it can be assumed that everyone using a blog, social networking, or a website in general for their business needs to be aware of the rules… even if you don’t plan on following them. Knowledge is power, ya know??

So the brief synopsis is that the FTC is demanding full disclosure. The folks at the FTC worry that with all the new media forms out there, consumers are generally confused by what they are reading online – and while consumers tend to assume (or at least, that’s what the FTC says) that a movie reviewer got to see the movie they are reviewing for free (so the consumer understands that the reviewer benefited in some way from the review and therefore may be biased) they don’t realize that a blogger may be getting some benefit out of reviewing or endorsing a product (and – therefore – be a bit biased too). I think the FTC is not giving enough credit to consumers…. but hey, that’s just me.

So now onto the rule — the FTC says anyone reviewing or endorsing a product online must fully disclose what benefit they are getting from publishing said review/endorsement. So, for example, if Jane Doe Mommy Blogger writes up a review on the latest type of Brand X diaper, she MUST publish the fact that Brand X sent her a months supply of free diapers to test. And by doing this, the reader takes into consideration that Jane Doe may be a bit biased because 1) Free diapers are awesome and 2) Jane Doe may be giving a good review so she can get more free stuff from Brand X or another company.

Now, the argument from bloggers is that 1) the FTC is making bloggers look unethical in their endorsements and they are offended and 2) the rule ONLY applies to stuff online and not other forms of media so it’s not fair. Everyone in entitled to their own opinion. My personal thought is that if you protest full disclosure then maybe maybe you have something to hide. Am I wrong?

Anyway — on to how this affects you.

Most of my clients are online entrepreneurs — not necessarily bloggers who review or endorse products for a living, but most everyone uses testimonials in their marketing. It’s a gray area in the FTC ruling [using client testimonials for your own marketing, that is], but my motto is ‘better safe then sorry’. The FTC is most likely not going to go after the blogger if they do not fully disclose benefits — however as consumers become more aware of these new rules, they will be looking for the full disclosure. And if they don’t see it, they may end up not trusting the review. There’s no way to tell… but again, better safe then sorry.

So my advice to anyone using testimonials in their marketing — Full Disclosure is the way to go.

I would guess that 99% of the testimonials you get from clients are honest to goodness testimonials. Even if you asked for them, you are probably not offering anything in return for said testimonial. But if you are… you should say so. New FTC rule or not.

Where ever you have posted testimonials from your clients, make sure everything on there is the full, honest truth, with any benefits the client received from providing the testimonial right there in black and white.  Honesty is the best policy (thanks, kindergarten, for providing me with that life lesson) and when reading a review, testimonial or endorsement knowing that the author benefited in some way from publishing that would not necessarily sway me either way — however what it will do is make me respect that business [where the product or service is from] more. And it’s more likely I will buy from someone I respect.

A good practice if you plan on soliciting testimonials from your clients (whether you are giving them something for the testimonial or not) is to ask permission from them to pass along contact info to people who want to follow up on that testimonial. When you post testimonials online, make a note that you can provide contact info — so even if “full disclosure” is not needed because nothing was received in exchange for that testimonial, your prospects can opt to verify or follow up on those testimonials… giving them peace of mind on spending $$ on your stuff and showing them that you are the real deal honest business person. It’s a win-win.

So what are your thoughts on the new FTC rule? Do you think it pertains to all online entrepreneurs? Do you disagree with full disclosure? Let me know your thoughts – either leave me a comment or shoot me an email.

Until next time!

~Victoria Potts Keale is a newbie blogger, website designer, entrepreneur extraordinaire, mom, wife, daughter, sister… well, you get the gist. She lives in her hometown of St. Louis, MO in an old haunted farmhouse with her 2 kids and drummer hubby. She has 15 tattoos and wants more. She loves 80’s music. She thinks writing bios in the 3rd person is wacky. You should email her and tell her what else to put in her bio – victoria@lynnraedesigns.com – but don’t spam her, cause she’ll get angry.

Please feel free to use this blog in whatever, but make sure you credit it back to the author (link it up here!!) and send us a note that you used it, cause we’ll give you some link-love right back.

My First Rejection.

Well, no, not really. I’ve been rejected before. But this time, it was different. I liked it. This time, it was exactly what I needed to hear.

You see, as a business owner and a site designer, I had a problem.  For the longest time I would always, always say “yes”. I was the “yes” girl.

When I launched my new business this past January, I vowed to make changes. I vowed to set up guidelines for working with me – and to stick with them.

Creating a website or graphic for someone else’s company takes work from both sides – I need your feedback and ideas before I can get you what you actually want. I have created worksheets and questionnaires for my clients to fill out so I can get all the answers I need. That was one of the problems I had in the past – clients saying “I don’t care, do what you think is best” which is not conducive to building YOUR brand. If I design everything based on my style and taste, ultimately you will end up not being satisfied with your product. (Not to be confused with me building on an idea – that’s different)

So when I was contacted by a prospective client this week, and the email was a huge red-flag for me. It simply read “Hello. Please send me your skill set. Thank You.”. Right off the bat, I knew they didn’t take even a second to visit my website, since listed right there in plain english are my “skill sets”.

My reply was cordial and friendly – explaining my procedure for phone consolations and requesting for more info on the project over email prior to the call. His response was a flat out “No” – he needed his stuff now and could not wait.

Now, I understand the need for getting something done ASAP. I am sympathetic to that and I will bend my rules in certain situations. But assuming I will stop work on all my clients projects and prioritize yours when we have no prior relationship and when you refuse to send details over email is just, well, insulting to me. The reality is, I run a business, I am busy, I have clients – and treating me as if my schedule is unimportant is just rude.

So I was happy with that rejection. I celebrated (with a cookie, actually). It reinforced the fact that I was making the right decision by establishing my boundaries and standing by them. My clients know that they are important to me and that they will be taken care of. And for those who are not my clients yet, I hope you understand that my rules and restrictions are in place for two reasons – 1) Because I respect myself and 2) Because I respect my clients.

Here’s the real truth — I am not an employee. I used to feel like getting a client project was actually them doing me a favor. Now I recognize that it’s the opposite. Web designers are a dime a dozen… and everyone treats their business differently. I’m not reinvently the wheel here, I know there are other people who can do what I do… but what you get when you work with me is… ta da! Me! And while before I just lumped myself in the category of  “just another web designer”, I now know I am different b/c I am personally involved in my clients project. I want them to succeed more then I want them to pay me (the money is just a perk).

So from here on out, my prospects and I interview each other – we decide if we should work together. I do not give the time of day to those people who treat me as if I am their employee, as if they are doing me a favor. Trust me, I don’t need those kind of favors.