Have A Coke And Pay A Commission!

8 years ago

Good question

because in our world, the bartender/blogger is consistently talking to you and telling you how great coke is..

If you're reading a post or watching a video then you are being spoken to or in other words, a designed message is being delivered to you...

That's why, I believe..

Have a cold one,
Ike Paz

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rob21

8 years ago

Originally Posted by aizaku

Good question

because in our world, the bartender/blogger is consistently talking to you and telling you how great coke is..

If you're reading a post or watching a video then you are being spoken to or in other words, a designed message is being delivered to you...

That's why, I believe..

Have a cold one,
Ike Paz

...yeah the prospect is being spoken... people are constantly being sold on and pitched almost in every sense day after day. When you go to a shopping mall, a store, a coffee shop, a movie theater, on the beach, read a magazine,etc. ...and you won't always see disclosures all over the place. Get my point?

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Regional Warrior

8 years ago

Bartender is getting paid to work not talk about a product / MMO have to by law by the FTC have the disclaimer so when the buyer reads why and buys we get paid

Jason

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Zachary S

8 years ago

Lol now I'm having a Coke..you sold me on that one..

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rob21 8 years ago

Originally Posted by Zachary S

Lol now I'm having a Coke..you sold me on that one..

LOL...did the person who sold you the coke, tell you that is would make a profit of your purchase!! lol...
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yukon

Banned 8 years ago

Originally Posted by rob21

If you walk into a bar and order a coke, the bartender or bar owner doesn't come rushing to the balcony warning you that he will receive a commission or profit if you buy that bottle of coke through him.
In my opinion that would be just plain stupid because we as customers know that the bar exists to serve it's customers but also to make a profit... that's business, right?

So why do we as online marketers in the internet marketing space, have to make disclaimers and "warn" people that if they choose to buy whatever we are promoting, we will receive some sort of compensation? Just like any other business we are in the online business to serve but to also make a profit, right?

I haven't heard or read much about this issue in the internet marketing niche, so just decided to put my thoughts out there.

Let me know what you think about this "commission disclaimer" topic.

Maybe because the bartender doesn't write mile long sales pages claiming his bottle of Coke cures cancer. I bet the profit margin on a Coke is nothing compared to whisky.

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rob21

8 years ago

Originally Posted by yukon

Maybe because the bartender doesn't write mile long sales pages claiming his bottle of Coke cures cancer. I bet the profit margin on a Coke is nothing compared to whisky.

LOL... but not all sales letters promise to cure cancer, but they still need to disclose. yeah...whisky should be the OTO upsell for coke buyers.

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kilgore

8 years ago

For many of us, it's the law.

There's a difference between someone selling a Coke at a bar or a book online and someone who gets compensated for endorsing that Coke or gets an affiliate commission when a visitor buys a book that was reviewed on their website.

To simplify, the relevant difference mostly comes down to when as a business owner you are being paid by the seller of a product and not by the buyer of a product. In that case, your motivation for writing about or otherwise promoting a product must be disclosed, both for legal and ethical reasons. Your customers deserve to know that you have a financial incentive for your activities.

That said, if you're creating an e-commerce site selling Coke or books or widgets, as you say, the financial incentive is apparent so there is no need for additional disclosure.

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Steve B 8 years ago

Originally Posted by kilgore

. . . as a business owner you are being paid by the seller of a product and not by the buyer of a product.

Wow . . . I've been wrong all these years. I thought the buyers of my products were paying me.

Steve
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- rob21 8 years ago
  
  Originally Posted by Steve B
  
  Wow . . . I've been wrong all these years. I thought the buyers of my products were paying me.
  
  Steve
  
  ..yeah. Me too! ...but I'm sure that the people paying me are the buyers, not the sellers.
  
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rob21

8 years ago

Originally Posted by kilgore

For many of us, it's the law.

There's a difference between someone selling a Coke at a bar or a book online and someone who gets compensated for endorsing that Coke or gets an affiliate commission when a visitor buys a book that was reviewed on their website.

To simplify, the relevant difference mostly comes down to when as a business owner you are being paid by the seller of a product and not by the buyer of a product. In that case, your motivation for writing about or otherwise promoting a product must be disclosed, both for legal and ethical reasons. Your customers deserve to know that you have a financial incentive for your activities.

That said, if you're creating an e-commerce site selling Coke or books or widgets, as you say, the financial incentive is apparent so there is no need for additional disclosure.

Ok I get the your point of view, however everyone in business has in the core a "financial incentive", otherwise they wouldn't be in business.

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kilgore 8 years ago
Originally Posted by Steve B

Wow . . . I've been wrong all these years. I thought the buyers of my products were paying me.

Not if you're an affiliate marketer. For instance, when one of my customers buys something, they click on my affiliate link, go to the seller's site (e.g., Amazon.com) where they complete their transaction. Two months later or so, I get a deposit in my bank account -- from the seller. I never, ever get a dime from the buyer. This is why Amazon and many other affiliate programs refer to the commission I earn as "advertising fees" (see for instance https://affiliate-program.amazon.com...dvertisingfees). As I mentioned above, the same also holds true for others such as bloggers running sponsored posts.

Originally Posted by rob21

Ok I get the your point of view, however everyone in business has in the core a "financial incentive", otherwise they wouldn't be in business.

True, but there are different types of financial incentives and different sources of financial incentives. For instance, if you review a product on a blog, it's possible that you:
1. Got paid a fee for posting the review in the first place.
2. Get a commission on the sales of the products you're reviewing.
3. Get a free review copy of the item in exchange for the review.
4. Get advertising from a fourth-party that is not in any way related to the product you're selling (perhaps you have Google Ads or something similar on your site)
5. Don't get any finanicial compensation at all -- maybe you wrote the review simply because you really love/hate the product or to build up reputation with your audience
This is hardly an exhaustive list of incentives for posting a review - and of course the same sort of list could be made for other types of product-related content besides a product review too. The point is that from a consumer's perspective it's not always clear which of the above incentives applies. If (1), (2), or (3) the fact that the reviewer is being compensated by the product seller poses a potential conflict of interest as the reviewer may feel some obligation or pressure to post a positive review. On the other hand if only (4) or (5) applies, there's no reason for the reviewer to post anything but the most honest review. Without reasonable disclosure, the consumer may have no way to figure out a reviewer's motivations.

Again, to be clear this doesn't apply if you're the actual product seller. For instance, if you're an Amazon affiliate then you need to disclose if you're being compensated by Amazon. On the other hand, if you're Amazon itself, you don't need that sort of disclosure. Though of course, there are other rules you'll need to be aware of and follow even then.
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discrat

8 years ago

Bartenders getting Commission off each drink sale ?? That's news to me.

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rob21 8 years ago

Originally Posted by discrat

Bartenders getting Commission off each drink sale ?? That's news to me.

LOL... that is not what we're talking about. However you may a point there...
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Regional Warrior 8 years ago

Originally Posted by discrat

Bartenders getting Commission off each drink sale ?? That's news to me.

Don't the Shot girls get a % of whats sold at a alcohol promotion? therefore they should have a sign around there necks telling the punters this

Jason
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agmccall

8 years ago

In a sense there is a point. If I buy some PLR and start to sell it I do not need to disclose that I am making a profit. But the affiliate promoting for me has to, even though they are using the same marketing techniques and material that I am.

Have a coke and a smile

al

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rob21

8 years ago

Originally Posted by agmccall

In a sense there is a point. If I buy some PLR and start to sell it I do not need to disclose that I am making a profit. But the affiliate promoting for me has to, even though they are using the same marketing techniques and material that I am.

Have a coke and a smile

al

Exactly! ...doesn't make much sense... even looking at it from the consumers rights point of view.
Appreciate your comment.

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CASHsystems

8 years ago

In many countries, it is required to make disclosures by law. I know here in the US, you must disclose.

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rob21 8 years ago

Originally Posted by CASHsystems

In many countries, it is required to make disclosures by law. I know here in the US, you must disclose.

Yes in most countries it's required, but the point is why should affiliates have to make such disclosures. It's pretty obvious that if someone is working to get sales, he's doing it for some sort of compensation...pretty obvious in my opinion.
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Brent Stangel

8 years ago

but the point is why should affiliates have to make such disclosures.

Because too many people were writing "reviews" as if they were an objective commentator, when in fact, they had a financial interest.

Now people have to state upfront that they have a financial interest.

It's commonly know as "transparency."

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Kay King

8 years ago

EIGHT posts in a row to "make your point"???? You can make one post with multiple quotes - and one "lol" is usually sufficient.

I've been wrong all these years. I thought the buyers of my products were paying me.

You are wrong if you are talking about affiliate products - which is what the OP has mentioned. A buyer pays the same whether from an affiliate or the product creator....it's the SELLER who pays commission.

The OP doesn't seem to know the difference between affiliate commission and product markups in a retail environment.

If a bartender serves a coke - it's part of his job as an employee.

But more than that - the owner of that business buys the cokes wholesale - just like the rest of his inventory is purchased from middleman supply companies. Thus, he owns that product when he sells it to you (at a markup) so there are no disclaimers to make.

doesn't make much sense..

It does make perfectly good sense. An affiliate marketer is selling a product without the need to buy and stock it before selling it.

The person selling your "coke" has to buy that product and physically have it in inventory before it can be sold.

That's pretty basic business info, wouldn't you think???

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JohnMcCabe

8 years ago

Originally Posted by rob21

Yes in most countries it's required, but the point is why should affiliates have to make such disclosures. It's pretty obvious that if someone is working to get sales, he's doing it for some sort of compensation...pretty obvious in my opinion.

As Brent said, the disclosure is required because too many affiliates learned to use what one former member here called "little fictions", totally made up stories about how Product X did wonderful things for him (or whoever he was pretending to be).

.info domains were nearly ruined by spammers using the cheap domains to promote fake news pages, localized by the reader's IP, touting some medical miracle product.

Since said affiliates have no shame, regulators had to provide an artificial substitute. Better a disclaimer than a trip to the poorhouse after a fine, or even a trip to the graybar hotel...

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AronParker

8 years ago

Good point!, it's just because of the increasing number of online "Gurus" promote fraudulent products I guess with big promises and hype.

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Have A Coke And Pay A Commission!

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