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FTC Tightens Guidelines on Bloggers, Tweeters to Encourage Transparency in Paid Endorsements
You may have read already that the Federal Trade Commission (FTC) has amended its guidelines regarding endorsements and testimonials, last changed in 1980, to require bloggers to disclose a financial relationship they have with an advertiser or agency when publishing a review about a product or service. This most likely has to do with bloggers such as those recruited now by Walmart, Lifetime, or other big brands trying to influence the bloggosphere, but nonetheless, the guidelines do not discriminate. In the words of the FTC:
| 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. |
The Wall Street Journal published a piece on this, implying that the FTC wanted to restrict gift giving to bloggers, and followed up with at least two clarifying articles which made it clear that the FTC was targeting advertisers, and not bloggers, to maintain the ethical responsibility to fully disclose when bloggers are paid to positively review a product. In the FTC article mentioned above, tweets from Twitter are not mentioned, but The Wall Street Journal does include them in its analysis, as any experienced online person would as well, since both blogs and personal Twitter feeds aka "micro-blogs" and are being used to endorse products and services, both in a paid-for-services way, and in a strictly editorial way.
Discussion on this topic can go in several directions, including the direction of federal government involvement in general and whether or not it's a good idea. Let's refrain from that conversation, and instead focus on why the FTC was compelled to amend these guidelines in the first place. Usually government springs into action based on a relevant current issue. The issue here is clear: the bloggosphere has been growing and growing. The Twittersphere has been growing even faster because creating content for a "micro-blog" is a lot easier than publishing a proper and effective blog post. That said, some bloggers and tweeters are taking liberties with their public voices which may not be in the best interest of maintaining truth and trust when endorsing a product or service, and can actually pollute so called "word-of-mouth" marketing. Let's explore:
BLOGGING: BACK TO BASICS
Bloggers started blogging, in my opinion at least, to have a voice. As a voice, they had to say something worthwhile to maintain an audience. Some were talented enough to just write about their lives. Others had to have themes and be top trendspotters. Like magazines, they searched the world for good product or service to recommend. Early PR firms or boutique firms actually had their finger on the pulse of this word-of-mouth movement that at the time, was extremely genuine because bloggers had devoted followings - small or large - each had some kind of influence over purchasing decisions. As a blogger myself, my first direct pitch was from then first time author Jennifer Solow. She reached out to me to review her then new book, The Booster. Her directive: if you like it, please blog about it. If you don't like it, please don't. Well I did review it, but *gasp* I didn't mention that she sent me the book to read. Ethics would indicate that maybe I should have disclosed that I got a free book, but you know what? If the book was bad, A. I'm not going to finish it, and B. I'm not going to recommend it to anyone because my reputation would not be trusted when others went out and bought it and were bored stiff. But I could have added a little sentance at the bottom of the post. It would not have hurt my blog post in any way.
True blogging, in my opinion, is just genuine. If you really need a sample in order to give a proper review, fine. For the nomie baby car seat cover, sending a sample to a mom blogger makes sense because it needs to be mom-tested-and-approved. But for a designer like SpoonFedArt, whose publicist first emailed me long ago, little tips about cool stuff can go a long way. When I opened the email from the publicist to tell me about something wonderful that just happened for the then new company SpoonFedArt, I read it, liked the product, and blogged about it, saying how fun my inbox was those days.
TWEETING: THE $1 TWEET
Or is that the McDonalds dollar menu?
Collective-E tweets for our members who pay for membership. Our tweets spread naturally b/c the links are just so good. Tweeting information about our members is clearly stated in our membership benefits (we refer to it as Promotyping, a term we made up), but it's also a no-brainer for us, and we couldn't not do it if we tried (that's why we made it a benefit). This is a most creative and effective use of a Twitter feed for potential profit (because yes, people do understand that part of their Collective-E membership includes endorsements from us via social networking). We didn't sell our Twitter souls for our 140 character real estate for $1 to tweet about a random product from some random guy hocking his wares. That would dilute our Twitter strength, and thus hurt our actual recommendations. If you are considering selling your Twitter stream for $1 a tweet regardless of what the product is and if you like it or not, think again if you want quality followers.
ETHICS: WHO'S JOB IS IT TO BE ETHICAL or JOURNALISTIC INTEGRITY
Bloggers who are in this for the free stuff should re-think the impact of their voices, and consider going back to basics, where their voice is key, and trust is their golden egg. You don't need to review a piece of art or a limited edition product to know you you like the look of it. If you're so concerned about integrity, put on a disclaimer that you've never actually touched the fabric or the spoon, and to buy at your own risk. But come on people.
The Wall Street Journal points out that "...newspapers generally prohibit reporters from accepting gifts from a company they write about to protect their credibility with readers." Note that reason: to protect their credibility with readers. Bloggers do not have an editorial department or publisher to please. They just press "publish" and up it goes for the world to see. This is great, but requires self-monitoring to make sure you are fairly representing an industry of words.
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Thanks @kelcott for passing along this article from Gally Cat: http://www.mediabistro.com/galleycat/web_tech/how_big_is_the_ftcs_new_fo...
Isn’t it crazy that children don’t carry ID? An entrepreneurial solution to give parents more peace of mind.
As the mother of a 17th month old very active little guy, it scares me to think that he does not carry any form of ID. For now I can keep up with him, but as he gets older and is out riding his bike, skateboarding, skiing, at camp or on a trip, what if something happens, how will I be notified? Then I think of parents with children with autism, allergies or other medical conditions, their level of stress must be even higher. Short of tattooing vital medical and contact information on your child’s arm, what can you do to ensure that you will be notified in the case of an emergency; if you child were to get lost, injured or is otherwise unable to speak?
Collective-E Member Stephanie Cion, founder of WELLalarm,has inadvertently invented a perfect solution. In her quest to create a more technologically advanced medical alert for her own chronic medical condition, she created something that has multi-use, an ID children can wear that she calls the Kids Identification Solution (KIS). Products including helmet stickers, iron on clothing labels and really cool charms, beads and other products allow you to link a unique ID code on the product to an online account where you store all your child’s vital contact and emergency information. In the case of an emergency, the emergency responder or bystander calls an 800 number and is immediately given access to that information. The VERY best part to me is the Parental Notification System, if the online account is accessed the parent is immediately notified via text or email.
It is not that you won’t worry, but thank you Stephanie for this brilliant invention allowing parents to have a bit more peace of mind.
Note: If you are an adult with an allergy or medical condition, you won’t find more beautiful and technologically advanced medical alert anywhere, click here to learn more. >
You just never know. An article in Inc Magazine leads to $1.3 million investment for Michelle Madhok, Founder She Finds
We always like to celebrate a member in the press, but Michelle Madhok, founder of She Finds parlayed a piece in Inc Magazine into a $1.3 million investment, now that's a party! Morale of the story, say "yes" to everything because you just never know.
Why I don't just look at HARO for the Leads
Unless you're a small business owner who has been living under a rock, you have more than likely used Help A Reporter Out (HARO) to get pr leads, and who knows, you even have sent a few out yourself!
Just in case you don't know HARO, in brief it's a free service that allows the media to submit leads to adventurist/ publicist/pr expert Peter Shankman who then posts them on one of his daily emails. It's a great tool, bringing what was once only available via PR Newswire's Profnet (or long term, cultivated) relationships to entrepreneurs, publicists and business owners nationwide.
Now here is why I love HARO....beyond the leads....and beyond Peter's stories about his cats, Megan, trainer, and the rest of his team...
HARO is a great barometer of what is hot in short lead media. Look closely and you'll see patterns that will give you clues as to what stories are hot, what stories are being covered too much, and some that are slowly growing from sparks into larger trend pieces. It's almost like a short lead editorial calendar!
Here are somethings you can do when reading HARO (beyond pitching leads that HONESTLY match your brand - don't stretch it people):
* Look for stories that are popping up in several short lead publications almost verbatim. This query will soon be overdone so though you can reply to it if you are a match, don't pitch a similar story to the newspaper a week from now, it's old news!
* See certain authors or editors popping up time and time again? Take the time to get to know what they write and who they write about! Catalog this in your brain! Someday a story you're working on may be right for them!
* See a topic that is consistently popping up, figure out if you have a new take, angle, or spin on it and pitch that to your local press or national press.
* See a hot trend story emerging? Figure out if you can use your expert status to comment on it!
* See a hot trend story you can create an offshoot story of? Share a new approach about the story? Spin yourself into it and pitch that to your press contacts!
* See a section of Peter's emails that is getting heaps of queries (business, financial, health, celebrity) clearly the media considers this subject a hot topic! Follow it and see if you can spin yourself into a story.
Remember - the media are sending out queries regarding what they are looking for on HARO. They are basically sending you a message in no uncertain terms about what's hot for them right now. While of course you should reply to queries, don't stop there! If you use your pr strategy brain you may find that there is a trend story emerging that the outlets are interested in following. Don't just reply, create a pitch of your own and go after your local and regional press!
I myself am now off to review my HARO email myself.
Happy pitching!
Our members are multi-talented, Bernie Madoff poem by Nancy Mindes
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The Ballad of Bernie: A poem for our times
On Daily Candy Today! Member Rachel Dooley of Gemma Redux
Wowzers. Two Collective-E members in Daily Candy in one month! We can't take the excitement when we when we hear the news and have to keep it top secret. We pretty much want to pop. So pop into this: Collective-E member Rachel Dooley founded her jewelry design business, Gemma Redux, as a creative outlet while studying for the bar exam. Makes you kind of want to study for the bar exam, and express yourself in jewelry doesn't it? Not to long ago, Rachel did decide to quit her day job - yes, in this economy - and has been going full force ever since. Did you catch her coverage in the Reuters article on Forbes.com? Careful, her mindset and collections may just inspire you to do something drastic...Check out her feature on Daily Candy Everywhere.
Trust me, if you are driving around with a child's car seat you need this mom invented product
If you already have car seat experience, then I am singing to the choir, you will immediately understand the brilliance of this product. For new moms, you might not understand the almost impossible task of cleaning a car seat. With the risk of leaking diapers, carsickness, crumbs and spills, it doesn’t take long before a car seat can become a smelly bio-hazard in the back seat of your car. As many brilliant child products are developed, Collective-E member and mom, Katie Danziger spent one too many hours trying to break apart her car seat and get it thoroughly clean. She searched high and low for a bib like product that she could put on her car seat to keep in clean but there was nothing to be found; so like many moms before her, without any product development experience, she became a mom-inventor and created her own solution.
Besides the fact that the nomie babyTM car seat cover saves hours of clean up time, and makes it easy to keep your car seat as clean as new, it is affordable, only $34 (AND you’ll get 10% off that using this code nomieCollectiveE when purchasing). If you do the math on the hours you’ll save cleaning your car seat, not to mention that your car seat will last longer and remain almost like new, it is truly a no-brainer product purchase!
It comes in 6 great colors, including her new charcoal and navy, and has these other great features:
Easy to put on and take off: On and off in a snap. The nomie babyTM has elastic edges allowing it to fit most standard car seats, such as the Britax Roundabout and Graco brands. The Velcro opens add to the ease of installing the cover. The nomie babyTM slips over the existing cover without having to remove it from the car, or struggling to disassemble the straps. Simply open the Velcro, pull the straps thru, and close the Velcro around them.
Comfortable, cozy AND waterproof: People are most surprised to find out how the nomie baby can be both waterproof and soft and cozy. This is possible because the nomie babyTM is made of 3 separate fabrics put together to give your child the most comfort while at the same time protecting your car seat. A cozy soft fabric sits against your child, a padded layer allows for absorption, and finally a third layer which is treated with a waterproof barrier keeps your car seat protected. The 3 fabrics have been quilted, so the padding won't clump in one area after machine washing.
Machine Washable: Unlike a car seat, the nomie baby is machine washable. In the case of a mishap, simply take it off your car seat, throw it in the washing machine then dryer, and slip it back over your car seat!
Don’t wait until it is too late, an investment in a nomie baby car seat cover is your insurance coverage against spilled milk, exploding diapers, and Cherrio crumbs. As you are slipping off your car seat cover and throwing it in the wash after any sort of car seat disaster, you will be thanking Katie Danziger, for developing such a brilliant product. As Katie says, “happy-mess.”
Do you have a car seat disaster story? Please let us know! If it is bad enough you might just win a nomie!
Details
Website: www.nomiebaby.com
Price: $34
10% Coupon Code: nomieCollectiveE
Collective-E Just Debuted Posting http://www.collective-e.com/newest-arrivals-nomie-baby
P.S. The picture is my son Asher in his nomie baby covered car seat, it has already saved me hours of clean up time!
The Journey with My Money Matters Continues...
If you caught my first entry about my journey with My Money Matters, you know that like too many women (unfortunately) my relationship with money and finances is never my favorite. I hate doing my books, organizing receipts, and I was never really on top of all things money-related. Scary I know, but fortunately I've had partners who love that area of business, and personally I've always been on top of things, just not very thrilled about the entire process.
Tired of feeling negative energy towards money, and realizing this probably doesn't serve me as an entrepreneur, I decided to pick up Collective-E member Galia Gichon's My Money Matters Kit, and begin my journey to financial organization freedom.
Well it's now been six weeks and I'm beyond thrilled! First of all, on the most basic level, the kits is hip, fun, and easy. It comes with a mini-easel to prop up my affirmation cards, it's visually pleasing, and not childish. The tips Galia gives on the back of every affirmation card are fantastic.
What's more, while Galia helps you organize your money and your attitudes about money, she is also helping you organize your life. I became more aware of where I put things, what I spend, where and how I pay bills, bookkeeping, the works. I set up alerts on all my banking, I checked my credit card due dates - while doing so I noticed my bank had issued me another credit card without my permission - to be sure they were always on time, and I basically became an active player in my financial life.
This also means tracking receipts, picking a day every week to do all my bills, check memberships, update contact information, the works. By doing this things don't pile up.
I do my activities at a pace that works for me, and saw a change in my attitude and business immediately.
Galia's website also provide's great resources for all thing financial and beyond - from business news to insurance information and comparisons! Be sure to check it out here!
As we move into month three of my working with the kit, i'll be sure to keep you posted. As a gal who used to cringe at doing her taxes, I can now say I have marked my calendars for all personal and professoinal tax days, and look forward to working with my accountant to be sure mine are done well and I have everything I need for her when I see her!
If I can do it, you can - believe me! Check it out, or at the very least sign up for Galia's blog, she will make you feel at ease, and give you great pointers on personal and professional finance in an easy to swallow and likeable manner.
Thanks Galia!
Is it too early to assess your child's language and speech? Maybe not!
Can a 14 month old who says a handful of words in really be evaluated for speech and language? It turns out yes. I am really not a “type A” mom, it is just that I am lucky enough to be in a community of entrepreneurs who are doing really cool things that I love to try out. The lovely Karrie Russo, MS, CCC-SLP and founder of Lift Program is a speech pathologist and parent coach turned entrepreneur, she works with families to make sure that their children are on track, works with children who are developmentally delayed in language and even coaches nannies and babysitters about how to properly help develop children. She finds the most critical period for establishing the foundation of language is between 12-24 months and she can tell if there are issues developing from a very early age. She offered to come over and assess Asher’s comprehension and expressive language development; provide suggestions on his current toys and how we can maximize them; suggest other toys/books; and provide language milestones and ideas to meet milestones. According to Karrie, the idea is to ensure he will have the building blocks in place before 24 months - when language becomes more complex.
Although I felt like Asher is on track with his language and communication as he is saying a few words and is also very communicative in terms of letting us know what he wants, why is that you still get nervous when someone is “assessing” your child? I guess that is like assessing anything in life like a new website or product offering, it is scary to put yourself out there for evaluation. Luckily the assessment involved playing; she arrived, pulled out some toys and played with him and he was immediately taken with her. According to Karrie, Asher IS right on track (what a relief), but she gave us some good ideas for helping along his development. Her suggestions include naming everything for him from body parts to food to colors, lots of puzzles and stacking toys, and giving him choices between two books or toys or even snacks, to get him used to making choices...which could help prevent temper tantrums down the road! One other tip that I found useful, while you want to give choices with snacks, do NOT give choices with meals or that could lead to trouble in the future. The meal is the meal and he has to live with it!
If you want an assessment or have any concerns about your child’s language development, I wouldn’t hesitate to contact Karrie. It was a very pleasurable experience for all, especially Asher!
Three Custom Color Specialists Saved my Face!
So, here's the scoop:
Monday I was scheduled to shoot a segment with Extra and Bestow Boutique for Valentine's Day. As life would have it, Sunday I was struck with an awful cold that to this day I'm still fighting....As you can imagine I looked like a hot mess on Monday morning and that was not good as I had to be taped on high-def TV at 11:30 am.
Fortunately for me, Trae Bodge from Three Custom Color Specialists was doing my make-up in the morning and I was saved, and for that I am eternally grateful. Here is why Trae and her team are make-up rock stars:
- They actually create custom shades that match your skin, yet still cover it, so they were able to make me look less pale and actually rosy cheeked and alive! Imagine what they can do when you don't have a fever!!
- They know exactly what color eye shadow and eyeliner to put on you in order to bring out your eyes (I even learned that despite what some big brands tell you about purple bringing out green eyes like mine, that isn't always the case). They can also do a sexy smokey eye without making you look tired or black & blue.
- They actually give make-up lessons in private so you can replicate their skills at home. This comes in handy for women like me who were the first born and self-taught make-up artists experimenting in their bathrooms when they were 14 years old.
- If a make-up company discontinues a shade of anything, they can re-create it for you!
- They came in early in the morning to do my make-up for the shoot, and let Katie tape it for the Collective-E Vlog, and gave more tips on camera for all of you. And their tips are stellar - Trae has had years in high profile cosmetics, and of course now is a co-owner of 3 Custom.
- They taught me that yes primer is necessary. I thought it was a scam to get me to buy more products from cosmetic companies.
- Their lip gloss, Violet Cream, is the best gloss I've ever used. They matched it to my skin tone, and gave me a tube to take to the shoot (THANKS) and it's shiny without being sticky. Perfect!
- They have a fascinating make-up laboratory where all the magic happens, and you can actually peek in and see how it's all created.
- Three Custom Color Specialists is a company run by entrepreneurs, how can you not love that?
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Collective-E is a worldwide collective of women entrepreneurs who have come together to achieve faster movement, exponential increase in resources and abundant support. We (and by "we", we mean founders Katie, Sabina and Beth) blog about tips in the four principals that drive Collective-E: business strategy, pr strategy, online strategy, and community. Plus, we have special guest bloggers share their wisdom.
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