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Affiliate | Ftc Crackdown: The Real Death Of Affiliate Marketing

Posted by lingodan on January 28th, 2010

Posted on November 25, 2009. Filed under Crazy Stuff, New Business Ideas, Small Business Resources and tagged Affiliate Marketing, Bottom Line, Business Opportunities, Crackdown, Disclosure, Fake Business, Financial Advice, Ftc, Hammer, Hurry, Jim Edwards, Kickbacks, Marketers, Million Dollars, New Laws, Online Business Owner, Product Endorsements, Promoting A Product, Real Death, Successful Online Business, Tainment, use of testimonials.

HEADS UP DISCLAIMER: I’m not a lawyer (nor do I pretend to be) so anything you read on this blog should NOT be taken as legal/financial advice. You should ALWAYS get your own suit wearing legal team to check this stuff out for yourself. So make sure you’re looking at everything you read here as pure info-tainment. Because that’s EXACTLY what it is… Nothing more. Got it?

Also, this is a blog post/interview by Jim Edwards that you’ll want to check out as well

The REAL Death Of Affiliate Marketing (And Just In Time For Christmas!)

By now I’m sure you’ve heard the FTC is dropping the hammer starting Dec 1st 2009 regarding product endorsements and the use of testimonials in marketing… (And if you’re one of those marketers living outside the USA everything still applies to you if you plan on selling inside the country… even online)

So while you may know changes are coming, what you may NOT know is how far these new changes will reach.

Here, if you’re in a hurry I’ll bottom line it for you:

On December 1st 2009 ALL Marketing As You Know It Will Change Completely…

As I’m a fairly successful online business owner what first got my attention was the forum chatter about the new laws regarding use of testimonials and kickbacks (affiliates/disclosure of material connections)

Most of the Big-Kids in my market thought the changes would effect those “I Made 9 Million Dollars In 15 Seconds!” sort of testimonials and also require anyone promoting a product to disclose if they were getting a cut.

And yes, that’s totally true…

Under the new laws you can no longer show best results unless you also show average results. You also need to disclose if you’re making a buck off recommending the product to people…

No big deal, right?

I mean, changes like that can only help people by removing moronic/obvious fake business opportunities and weight loss programs… Sweet!

But that’s not where the laws stop… that’s not even close to where they start!

In fact, the changes are so sweeping it would take me at least 10 pages just to scratch the surface of testimonial usage.

This is simply much, MUCH bigger than anyone was lead to believe…

Just How Big Are These New Laws? Here’s An Example:

ClickBank (A Billion Dollar Company) has what’s called an “Open Affiliate Program”.

This means anybody with a computer, some free time and a dream can get a link, promote a product and get paid every time somebody clicks and buys…

Super cool, right?

Hey, that single technique has been responsible for improving the financial lives of TONS of people (including myself)

Under the new FTC laws… those days are GONE.

Under the new laws (and this is just my interpretation of legal jargon) you can no longer make any claims about a product you’re endorsing unless you’re personally using it and can SCIENTIFICALLY verify the results you’re claiming.

In fact, this is so far reaching it would appear if you are the product OWNER and one of your affiliates makes claims using promotional materials they got directly from YOU containing result claims they can’t personally verify… BOTH of you are liable.

Bottom Line: You own a product. One of your affiliates promotes it somewhere and simply restates claims you make on your own sales letter… if they can’t back those claims up personally with verifiable data… you’re both hosed.

Example #2: You own a product and your affiliate makes claims you DO NOT support on your sales letter…

Guess what? Yup! You’re both toast! (Even if you have no knowledge of what this affiliate is doing)

Under the new laws it is the publishers responsibility to police any/all affilaites.

Good by ClickBank open affiliate program marketing! Will they have to close? I doubt it, but they will have to make some very big changes to how they allow people to promote as affiliates.

Holy Crap! What About Joint Ventures And Big Mailings?

For me this would appear to be a MEGA concern as it’s the cornerstone on which my entire business is based…

On the surface it would seem getting people to hit “Send” for your product is something that is laid to rest alongside “flogs”

However, what I’m seeing/reading this isn’t actually the case.

(Keep in mind, this is my non-lawyer interpretation of VERY vague legal jargon) It would appear so long as the Joint Venture partner makes ZERO results claims inside the promotional email and fully discloses the link inside clicking is an affiliate link… then you both should be fine.

Holy Crap We’re Screwed! We’re Screwed! We’re Screwed!!!

I’m sure by now if you’re making money online and/or even thinking about choosing this sort of business you’re about 15 seconds from physically lighting your computer on fire… And I get it, but hold up a second because all is not lost.

After spending HOURS reviewing this stuff what seems to be the bottom line for us kids in the online marketing space is this:

So long as your marketing is 100% transparent with zero results based testimonials, along with FULL affiliate compensation disclosures… and you truly have your customers best interest in mind you SHOULD be fine.

The issue (as I see it) is that the FTC has left A LOT to interpretation.

All Truly Is NOT Lost…

Obviously (as I said before) I’m not a lawyer, I just get advice from guys who play them on tv… I’m going to share with you where I’m leaning with my own business and hopefully you can get some ideas.

Jonny’s Potential Don’t Get Sued By The FTC Ninja Move “A”: From everything I’m reading it would appear the only sane move is to totally change how you might be marketing ClickBank products (including niche markets)

Don’t get me wrong… I LOVE ClickBank. I love them because they have paid me over $400,000 this year alone (YES, I can verify it AND I pay lots of taxes)

But their open affiliate program may just be too much of a potential legal minefield to continue using them as so many online publishers have.

Jonny’s Potential Don’t Get Sued By The FTC Ninja Move “B”: Not that I have in the past, but in the future I’m not going to use ANY results based testimonials. If I use any at all they will be what they are now “I like your stuff and you’re a really good teacher.”

According to reps from the FTC itself testimonials like that should be totally fine because they’re not “results based”.

Yes. There Is Hope. These New Laws Can Actually Make You MORE MONEY!

Just a few weeks ago I did an internal marketing test based almost entirely on the new FTC laws… this particular test made me a very large sum of money in a very short period of time. (Won’t disclose exactly how much, but let’s just agree it was more than $2.97 in under 365 days, you should personally never expect to make a dime and will potentially get facial mites just for having read this blog post.)

The entire process took very little time to build, only a few hours to implement… and was done WITHOUT any testimonials, WITHOUT any 3rd party income claims (or results claims of any kind at all) and WITHOUT any sort of standard marketing techniques period.

The entire sales process was 100% transparent from start to finish.

Despite the apparent lack of standard sales tactics, this particular marketing process converted BETTER than almost anything I have done before and was basically a full disclosure/breakdown of how I was selling them into the program in the first place.

Thus far my internal FTC compliance test has resulted in my highest grossing month of 2009 hands down.

So what if, just what if you were able to make oodles of loot as an affiliate without ever making an income claim, fully disclosing you were getting a cut AND using social media to market your links in complete compliance with every FTC guideline written no matter how vague?

Oh no, I’m not “claiming” anything… I’m just asking “What If?”

All I’m saying is the game has changed for everybody… BIG TIME. I’m guessing these changes will spell the end for 80% of the online marketers out there who rely exclusively on fake stories, false income claims and hype to sell their products. In reality this is fantastic. It leaves the market wide open for people like us who prefer to sell our stuff in an open, honest way.

Because as my “little” test just proved: you should NEVER lie… because the truth sells WAY more copies.

Chat with you later,

Jonny Andrews

PS: Please ReTweet/Hit the link below to share this on Facebook.
Also, please post your Share on Facebook

Mike Harmon

I’ve been reading along for a while now. I just wanted to drop you a comment to say keep up the good work.

Posted on November 25, 2009 at 5:45 pm

Steve Harmen

Jonny,

This is some heavy stuff. I’m really glad you seem to be paying attention because I for one have no idea how all this will effect my biz.

For a person who’s just getting started as an affiliate it sort of seems everything is dead for us now. But you are saying there’s a way?

Please share it. I know I’m not alone in this one. Do you have plans to release the method?

Steve

Posted on November 25, 2009 at 5:58 pm

jeremy

moronic panic ramblings.
1. State you have something to gain
2. Do not promote products you do not use

and do not lie aut the closin of click for a law that has been out for over 4 months now. Any marketer that doesnt know about this is just kidding themselves.

Posted on November 25, 2009 at 6:25 pm

Jeff Shoot

Jonny I have to say you put the fear of God into me with this one!

Are these changes really that hardcore or is this some sort of crazy prelaunch marketing thing you’ve got going here?

No really, which is it? You have me scared to death!

Jeff

Posted on November 25, 2009 at 6:31 pm

Dave Lovelace

How’s it going Johnny?

Interesting post. I haven’t considered how affiliate networkds like Clickbank would react. But I’m sure they’ll take measures to keep their platform alive and well.

Just remember guys, the FTC isn’t going to sue you the moment they see an infraction.

In fact, in reality, the average guy may never be “seen” by FTC eyes. There are simply not enough “eyeballs”.

You can bet the primary players in the industry (the large coporate businesses with big pockets to get major exposure) will be seen, and monitored, first because they affect the majority of public influence due to their large footprint on the net.

It is also important to note that you should not live in “fear” that the FTC will “sue you every 20 minutes. By all means take measures to comply. But if you are in violation, you will receive a warning first!

Dave Lovelace

For more viewpoints, also check out this post:
http://davidlovelace.com/new-ftc-guidelines/

Posted on November 25, 2009 at 6:35 pm

JonnyAndrews

Jeremy,

Dude, it aint that easy and obviously you haven’t really paid attention to what’s coming directly from the source… check that link at the top of the post and listen HARD to the interview. Then go and hire a lawyer to breakdown the actual documents and you’ll see this post hasn’t even scratched the surface.

Also, the law has NOT been out for 4 months, it starts on December 1st.

Jeff,

Yes, there is a way to pull it off, no it’s not a launch… but thanks for thinking of me! I’m going to do a webby for folks after Thanksgiving and show people a few techniques.

Jonny

Posted on November 25, 2009 at 6:36 pm

Carlton Riddick

Johnny,

Thanks for the breakdown of the FTC changes. I have been looking for one online.

Carlton Riddick
Twitter: carltonriddick

Posted on November 25, 2009 at 6:38 pm

Michael Stracher

Jonny,

Killer content. I have to agree this changes evrything but if you adapt and follow the rules it may end up being better for all of us in the long run and clean up all the hype that’s out there.

Now… how do I get rid of these facial mites!

~Happy Thanksgiving

Posted on November 25, 2009 at 6:39 pm

Tom Trotts

Is this for real?

I am about two weeks away from a major Clickbank product launch. My very first one! I have put alot of resources into this and it is pretty much too late to turn back.

Any ideas for those of us that are in the middle of a launch?

This blog post would seem to insight panic amongst current and potential affiliates.

marketing tactic? real world?

We’ll see I’m sure as with all product/service launches. But if this is real world, I would like to know what I need to do.

Tom

Posted on November 25, 2009 at 6:40 pm

Andy

Will have a Website soon. I’ve been hearing about these new rules. I will keep my eyes and ears open. Meanwhile, feel free to send me any new info you get concerning this.
Thanks for the Info so far.

Poor Andy

Posted on November 25, 2009 at 6:42 pm

wilsecs

Hey Jonny,

For a Newbie, all of this Sounds pretty scarey, but it doesn’t seem to have hurt you at all, and I like the path you have taken Honest.

I believe it will shake all the shonks out, and
leave the rest of us to sort out the whats, whens, whys, hows and who,s.

Thanks for the Tips

Wilsecs

P.S. I go along with what Steve has written
Re:Please Share It

Posted on November 25, 2009 at 6:45 pm

Sturgis

What??? You mean TRUTH will be required? I for one do not view these changes as threatening…

Posted on November 25, 2009 at 6:45 pm

bigbro

I demand to see your face mite data immediately !!!!!

Posted on November 25, 2009 at 6:46 pm

Helena

Thanks for posting this. I heard changes were coming on Dec 1st for marketers but didnt know what. What you are saying is scary for lots of folks but like you said if you market honestly and openly, it could actually be an opportunity, as you have proven with your test.
My guess is lots of people will have to start their marketing over from scratch….do you know of any other links with more info on this? Thanks, Helena

Posted on November 25, 2009 at 6:48 pm

jim ferris

Thanks for this info Jonny. Souns like you are definitly the dude to follow.
Thanks

Posted on November 25, 2009 at 6:48 pm

Ken Smith

Jonny
I for one am ecstatic with this news
BECAUSE I have been trying for some time now to get something happening. Buying program after program until I have finally realized just exacly what they are. Just a bunch of lies and false reports and deceit.I believe the time is long past due that somebody somewhere makes some legitimate rules to run by
The next thing I hope is that they will be enforced
Thanks for your take on this I find it very refreshing

Ken Smith

Posted on November 25, 2009 at 6:56 pm

Glenn D

Yep suuuurie!
I’m with Steve lost in the wilderness just when I thought I got a handle on it and set ready to see some kanga (money) rolling in, Crap!Pop Goes the Balloon!!!
Well hope you share your ideas with us Jonny, for me I have no Idea what the FTC is and I can only wonder how and why they have the power to tell the world what they can and cant do!

Posted on November 25, 2009 at 7:01 pm

Ishak

Thanks for the info. However it’ll not cause the death of IM. We’ll just see more truthful marketing and not bloated claims about products and very far from the truth. Should be fair buy for buyer

Posted on November 25, 2009 at 7:06 pm

Steve Grant

Jonny,
You should check if Click Bank would,for your product, have approval application attached to your product, for your approval and guidelines, to be a part of your affiliate program and be required to agree to very specific terms and conditions regarding their advertisements.
Steve “Still Chewing” Grant

Posted on November 25, 2009 at 7:08 pm

André Thomassen

Yeah..I thought something was going on when I saw that “new” marketing strategy from you.

Veeery nice though!!

Best Regards,
André Thomassen
TheGuruSnitch

Posted on November 25, 2009 at 7:12 pm

Brittany Andrews

Thanks for the info. I’ve read about this in quite a few places, and I heard the same thing about the FTC issuing a warning first. In fact, the an assistant director of the FTC did an interview stating that you’d get a warning first.

And the impression you got from his interview is that they are kind of going after the big players who have been misleading and scamming people. Also, if you get alot of complaints about your site he said that obviously brings alot of negative attention to your marketing by the FTC.

Pretty much there are millions of affiliate sites out there, do you think the FTC is going to try to go after all of them? Short answer: no. Just the ones that are obviously trying to lie, scam, and take advantage of people—and there are quite a few of them out there.

Not panicked about these new regulations, because all they’re asking is that you be more honest and forthright about what your marketing and how you benefit from that marketing.

Auction Inspector – Niche Software For eBay(R)…

We have managed to get over 50 powersellers to give up their best tips and insider advice so that you’ll never miss an opportunity again!

Here’s a link to the interview:

http://igottatellyou.com/ftc-change-interview.html

Posted on November 25, 2009 at 7:19 pm

Paul Lear

Hi Jonny,

Thanks for the info and insight, hopefully it will get rid of some of the scammers out there!

Great post, entertaining read, and showing there’s still hope… Love it!

Paul

Posted on November 25, 2009 at 7:27 pm

Mike

Hey folks…these new laws are no joke
it would be easier to take on Jonny in the
marketplace {lol} than to mess with the FTC.

My way of doing this is a good defense.

Jonny, what do you think of Len Thurmonds
Auto Web Law for having the right documentation
for our sites, newsletters,etc.

Maybe you could scratch us up a better deal
than the everyday price..hee.hee. I’m sure
Len would’nt mind the extra sales.

Posted on November 25, 2009 at 7:31 pm

Thom

Great work Jonny. I knew someone would sound off about the new FTC laws. Frankly isn’t it about time?

Posted on November 25, 2009 at 7:43 pm

Cam

this is amazing! I *just* read this and made $13,000,000 IMMEDIATELY after reading it! Jonny you truly are an evil genius!

(results not verifiable, just giving JA a little shizz….)

-Cam

Posted on November 25, 2009 at 7:45 pm

JunChong

Jonny,
I am about launch Clickbank product. My very first one! I’ve been hearing about these new rules and really no idea what is FTC.
I really would like to know what I need to do…

Posted on November 25, 2009 at 7:46 pm

beachbum1

Thanks for the info!–Sounds like you’re a good guy and looking out for the rest of us, so thanks again! I’ll remember your name in the future as someone honest and reliable as far as ‘pushing’ the right product(s)that will also truly help the rest of us financially. Cheer$ to your honesty and continuous money making,and honestly continuing to look out for the rest of us, especially as far as maybe being affiliates under you and makin some moolah too, just like you!

Posted on November 25, 2009 at 7:47 pm

Arlene deWinter

To be honest I’m glad the dodgy people will purged out of the system because it might ease up the traffic jam in my 5 email inboxes.
And who wants to be sold on a bunch of lies?

It’s good. The honest marketers have nothing to worry about, the scammer/spammers do.

I would hate to be selling products though. “Scientific proof” sounds like you need a laboratory.

I truly feel sorry for anyone who has been snowed over by sophisticated marketing tactics trying to get help with a painful problem only to find out it doesn’t work for them, or for anybody who isn’t printed on glossy paper and attended by airbrush fairies — or photoshop as the case may be. These are the types who brought the law down on everybody.

Thanks for cutting to the chase, Jonny!
Arlene

Posted on November 25, 2009 at 7:54 pm

Terrence

Hi Jonny,

I couldn’t agree with you more…! Yes, this is absolutely and tremendously good for all of us especially the honest, good-in-heart internet marketers alike… This are the people who would like to help the suffering, especially during our global crisis (economy) nowadays… May they (FTC) the S.C.A.M.M.E.R.S wipe out from our lovely Mother Earth… Amen to that and GOD bless…

Posted on November 25, 2009 at 8:05 pm

Violeta Esplana

Thanks, Johnny. Somehow this new changes will have an advantage for those that are honest.

Maybe will get rid of some scammers if not totally.

Violeta

Posted on November 25, 2009 at 8:05 pm

www_nbd8_com

Jonny! You said that you make about $400.000 in 1 yaer on clickbank…. that is amazing. Can you help me personally, make just a $500 or $1,000 a months. I tryied so many programms and advertise on google and face book – nothing works… just suck my money out. Can you help me – just a little… Please teach me… (I can’t steal your piece pie of online business and customers…) just help me if you know how, without spending a hundreds!! Please. Love you. buy now.

Posted on November 25, 2009 at 8:06 pm

James Coe

Stop the music now consider the intend of the FTC law … its to stop false claims i.e. FRAUD.
The TEST is You NOW must legally support your INCOME claims who, what, when, where, how about the $$$. If you can support your claims with Documented FACTS then you can PASS GO and collect the $200. Start the music!

Posted on November 25, 2009 at 8:08 pm

Tom Kennedy

Very interesting conclusions, but I also consider the opposite direction…where the
affiliate exposes themselves to the claims of the product or service…with income claims (always boring) and testimonials (Mark Victor Hansen…Again?!!) and so, the Affiliate has to be just as educated in who and what they pick to promote and refer as the Marketer.

I am looking forward to all the Twitter Bios being replaced by Compliance Disclosures!

Sure it’ll do some massive good, but it feels more like the KGB than the FCC.

God Bless America!
And Happy Thanksgiving…you got the Bird!

Tom

Posted on November 25, 2009 at 8:58 pm

Wallace

Jonny,
Clickbank is just one, just look at most BULL S##T CPA ads or even adsense ads on you see everyday. Will they go after Google as well ?

This sure is great time to be a lawyer. Oh, This was written by lawyers. Self given job security just like the health care “mess”, no one figure out the fine print without one.

Looking forward to any tips you may have after Thanksgiving. Thanks

Posted on November 25, 2009 at 9:16 pm

Ralph Merah

Jonny what’s happening?
I look at it like this.. Complexity and trickery is difficult, but Simplicity with truth and transparency is easier for everyone to understand and duplicate. Maybe it’ll bring about a level playing field for a change.
Interesting to see how this would evolve and impact Online marketing newbies…hmmmmm!

~Ralph

Posted on November 25, 2009 at 9:25 pm

Dan Dahlke

I think this is a great opportunity to separate the boys from the men. From what I have heard and read, it appears if you try to tell the truth and avoid testimonials that do not contain scientific rigor then you should be fine.

I don’t think this is the end of clickbank, and I’m pretty sure that everyone had to recently agree to a new set of terms and conditions upon logging into clickbank. I know I did. Jonny, did you closely review these changes in their terms? I think it basically removes liability from Clickbank in regards to the actions of their affiliates. I imagine they have taken all the necessary legal steps to cover their arse.

I heard an interview with an official from the FTC regarding the recent amendments to their advertising guidelines. He basically said they are going to target people who continuously are over the line with dishonest marketing practices. They are looking at taking out some big names and recognize it will be very difficult to police the entire IM world. The average affiliate marketer probably has little to fear, but we should all take every step we can to be honest and tranparent in our affiliate promotions. This is just good business and good ethics.

Furthermore, it is important to not take any federal language too literally. As a grantwriter for the past six years I am very familiar with attempting to understand goverment language and regulations. Here is a hint, they intentionally write their language to be very open to interpretation. It allows them flexibility in enforcing their regulations and allows federal officials discretion in dealing with situaitons that aren’t clear cut. It is kinda like the constitution in that it is a living document.

I don’t think we should freak out as internet marketers about the amended language. The government is just more clearly drawing the lines for us and now it is up to us to adjust and fall in line. If you aren’t putting up fake blog after fake blog you should be fine. For the vast majority of us this doesn’t change anything. That’s my two cents, or maybe a bit more . . . thanks for allowing me to share my opinion.

Dan

Posted on November 25, 2009 at 9:37 pm

Liam IAM

HELLOOOOO! Are we not stand up people… I mean ca mon now.

I know that all of you out there (unless you’re some black hearted myopic evildoer) have said to yourself, or to another associate in conversation, that there are MANY campaigns out there that need some (churching up) because we feel like they’re just flat out untruthful. Can I hear an AMEN?

This announcement/event has pound upon pound of BS loaded in it which brings me to the pragmatic tenure of what is going on…
1. Don’t ever piss off the FTC. Cross them and you’re finished, perhaps forever.
2. Don’t ever lie in your ads… and if you’re going to endorse your sales efforts with a testimonial – PLEASE DON’T use a resource that you can’t verify today and rely on tomorrow.]
Transparency is exactly, PRECISELY what is needed right now – and the “industry folk” absolutely must digest, understand, adhere and adjust.
Final point and the essence of finality: If this news is painful for you (and you know who you are!) then you really weren’t doing it right in the first place… were you?

Run clean, truthful, information rich campaigns.
Offer high-value to your customer.
Back it up!
Give stuff away regularly.
Sell’em more stuff occasionally.
Respect all resonable means of our regulators to protect the consumer. If you’re out of line,
get back “in-line”

Carry on – make money – live well – have fun.

-Liam IAM

Posted on November 25, 2009 at 9:42 pm

Ana Danel de Lavaque

Hi Jonny, good stuff you posted here! I listened to the full interview which link you put up there and boy, was the information vague! You are right, and this changes the game for real.
It is suposed to sound great is because it will impede scammers from fooling people into buying bad stuff, but honestly, apart from the huge changes this will mean for all of us marketing in the internet and for the encouragement to tell the truth when selling, really, listening to the interview with this FTC executive last night, I got very disapointed due to the lack of tranparency underlying this whole thing, because, being a natural health practitioner and seeing over the years how these institutions -supported by taxpayers money- which are there to defend the public from scammers, quacks and harmful stuff, pretend (and only pretend) to be doing their jobs, while in general they are there just to safeguard the bank accounts of Big Pharma and do ABSOLUTELY NOTHING to guard the public against the guys in white coats with college degrees who are supposed to also disclose (but do not) their money ties to the drug manufacturers -and we are talking BIIIIIG money here, billions every day- and who are drugging and damaging people’s health and sanity in many cases, without these institutions doing a damn thing about it.
The medical drug peddlers, they do tell people they will get better taking their drugs, right? and people trust them, ´cause they are doctors.
And in the cases -too many unfortunately- when people get worse because of the use of those drugs, bought and consumed based of trust, -and TV ads which I don’t see being banned- where the hell is the FTC when people are suffering from real bad side effects while on drugs which in many cases got approved to be sold to the public after only very little testing and unconclusive results, like Prozac for example)? WEll, the FTC guys are out there, heroically fighting acai berry sellers!! and veeeeerty busy writing laws which no one can really understand for the very basic reason: they were not meant to be understood, much to the contrary, they are meant to be vague, unclear and subject to all kinds of interpretations, depending on what they want to do with the marketer that day. They are unclear and full or generalities so they can be used to manipulate.
What the hell are WE supposed to expect, when this guy from the FTC was not capable of answering even one little thing that was definite and clear to Jim’s questions? He spent the whole time being vague and obscuring! the guy only relaxed when he was told the interview was about to end, for crissakes! If these are rules we are supposed to follow, we have to understand them FIRST. I am not saying they are good nor they are bad, they are just damn unclear, and if this guy can not say ANYTHING clear about them, and he probably helped write them!! how in earth am I suposed to understand them? How am I supposed to know how customers will PERCEIVE something I say in my webpage? It’s just ridiculous!

Am I allowed to say to people my product sucks and they should not buy it? maybe the FTC will like that… but on second thoughts, I AM NOT SURE IF THEY WILL!

Can a chess or soccer or any damn game be played if the rules are unclear? I don’t think so! And it is as simple as this: these guys are our employees. WE PAY THEIR DAMN SALARIES. WE SHOULD DEMAND THEY PLAY FAIR, BECAUSE THEY ARE JUST NOT DOING IT RIGHT NOW, AND WE ARE DOWNRIGHT ALLOWING IT. And don’t get me wrong, please! I TOTALLY AGREE WITH SAYING THE TRUTH AND ONLY THE TRUTH AND NOTHING BUT THE TRUTH. I believe in ethical marketing 100%.
I am just saying these guys are playing dirty because they are not making the multi billionaire companies and their peddlers comply, ONLY THEIR COMPETITORS.
Sorry, man! I’m just pissed off because of the lack of of tranparency on THEIR part, and our lack of guts to demand they come clean, and do their damn jobs with the public’s benefit in mind FOR REAL, that’s all.

Posted on November 25, 2009 at 9:50 pm

Paul Rafferty

OK so let’s say screw the FTC and simply market in Europe and China.
Europe has nearly 400 million people, the UK has 60 million and China (who’s second language is English)has well over a billion people – problem solved!

Posted on November 25, 2009 at 9:51 pm

jdub1952

What the Fudge? The coolest post I’ve ever read period…………. Rock on Dude you know I think this is the beginning of the biggest SHOWDOWN in World History!!! Between Who? Do the math talk around town that in 2012/2013 the Internet may become something like your local cable company. You pay for certain channels and or you pay to get on certain areas of the Internet? Check this out for yourself, things are about to get Crazy!
Good Luck in your endeavors

jdub1952=lol

Posted on November 25, 2009 at 10:27 pm

Chad Wilgus

Jonny, thanks for the break down. You should put the info. on the FTC from your posts into a product and sell it to everyone who has ever bought from you for $7.00 or something.

Posted on November 25, 2009 at 10:46 pm

Liam IAM

Sheesh! We’re getting upset… for what?

Posted on November 25, 2009 at 11:00 pm

Steve

Man it feels good, that I am just now starting to understand the basic Internet Marketing process,Life just got better by learning from solid teachers like You.

Posted on November 25, 2009 at 11:33 pm

barney

Jonny,

A few people have been saying _for years_ that if marketers don’t clean up their act(s), it would be done from the outside. None of the marketers wanted to hear that, but none of them did anything, either.

Enforced ethical action does not make a marketer ethical, but it will make that marketer act in an ethical manner, regardless of that marketer’s personal proclivities.

So, you made a test and found out that you have, basically, been losing money for years by lying? Gee whiz, what a revelation. Oh, and now you have to actually *use* the product you’re touting in order to claim gains? What a pity!

Oh, yeah … you have to actually have a functional way of being contacted by customers. And you have to be honest about what you say. Aw, gee.

Far as I’m concerned, the FTC mandate is long overdue, but it wouldn’t have happened if marketers were more involved with ethics and less involved with get-rich-quick schemes.

With any luck, this will weed out the snake-oil sales folk and inject some sense and responsibility into marketer’s claims.

But, then, I’m not making a fortune on the Web, just a living. When all is said and done, methinks this will have more impact on the IM marketers, the ones selling how-to-market info, than on any other genre.

I, for one, am glad to see it.

Posted on November 26, 2009 at 12:14 am

Gary Stubbs

Great stuff Jonny, As a Canadian This is great information for me, as I do sell a lot my info and Products to the good Old USA. BTW happy Thanksgiving.

Posted on November 26, 2009 at 12:15 am

Mike Deschaine

I assume any pages that you have up from the past would need to be updated to fit the new rules? Or is it like…new pages made after dec, etc.

But lets think about this POSITIVELY! First…who needs testimonials? I for one never read them anyway. Less sales copy to write and/or read(so that should shorten down those god awful long copy sales pages).

And…so now we have to tell that it’s an affiliate link. Big whoop. Most people can spot an affiliate link a mile away anyway. In fact I’d definitely feel much better about buying since that person was so up front with me. Makes your mind at ease.

But…as for this you need to use the product to promote it B-O-L-O-G-N-A……how the *@#$ are they supposed to keep track of that? So…if I’m promoting for Viagra? I better have a problem first huh?

Anyway. I also agree that who does the FTC think they are when it comes to global enterprise? And what are the penalties? Fines? or worse?

I mean you could always use Howard Stern with the FCC as an example. lol

Anyway, thank you for the info Jonny. I must have been living under a rock cuz i knew nothing about it

Posted on November 26, 2009 at 12:18 am

Jake

Jonny,

Personally, I am glad it happened. It’s a shame when you need the FTC (Federal Trade Commission) to get involved because there is so much crap about products in so many sales letters. I am not sure many marketers can tell the truth, so I agree with your assessment. I am positive I will make more money. The only negative that I see on the horizon is that this is a “shot across the bow” to let all marketers that they are going to be under far more scrutiny now. It’s only the beginning and I am sure a lot of marketers aren’t real thrilled about that part. It appears to me that we are all about to be policed into compliance with making truthful, substantiated statements that are 100% verifiable, among other things to come.

Actually, I can’t wait. It’s time to make money!

Posted on November 26, 2009 at 12:20 am

Matt

These new laws might make us pay more detailed attention to how we promote stuff.

If it is going to cut down on a lot of the BS out there then I guess it will be good for the industry and help prevent this idea to people offline that the internet is a scam.

Marketers who do it the ‘right way’ in the first place will have nothing to worry about.

Good work Jonny!

Posted on November 26, 2009 at 1:19 am

Owen

What I found interesting, that almost no one else noticed here, Jonny, is that you tested a campaign without any of the tricks Internet marketers think are absolutely necessary and okay. And you cleaned up! Folks, believe it or not, there’s a HUGE market for honesty and integrity out there. People are tired of being treated like the marketers think they’re stupid and ignorant.

I, for one, will have no trouble at all with the new regs. Unless of course Clickbank goes overboard covering their butt.

And here’s a follow-on to what someone else said mentioning Google: What if Google decided they could be liable and added “honesty” to their search algorithms? Talk about an opportunity for integrity-based marketing!:-)

Cheers and thanks for the content, Jonny!

Posted on November 26, 2009 at 3:44 am

Desan

I don’t live in the US. Kinda sucks I have to live by your laws. Or block US traffic, and lose a lot of my income.

Screw FTC!

You know. One thing came in to my mind. Many marketers are selling products and acting to be different person. For example a dermatologist, and selling skin care related products.

Does the new FTC rules affect this at all? If they won’t, I’m sure son they will.

Posted on November 26, 2009 at 4:03 am

Georgina

Jonny,

Thanks for your comment -very useful as always. I am optimistic. People get better info about what they buy and instead of a testimonial they will spread the good word about Our website or simple come back again.

Posted on November 26, 2009 at 4:07 am

Angel Trice

As the owner of dozens of domains and websites. Not to mention hundreds of affiliate accounts, you finally, for the first time caught my attention. Thanks for not wasting my time. Kudos!

Posted on November 26, 2009 at 4:57 am

Dave

I agree with others that have posted, that some of the IM Brady Bunch who promote EVERYTHING & ANYTHING with libary pictures of their supposed wealth, fake claims of how such an such product gives them the multi-millionaire lifestyle with only an hour’s work a week are going to be the one’s that primarily suffer.:-)

Plus how are the FTC going to monitor each and every website,cos there are MILLIONS of sites and a good percentage of those are IM sites run by affiliates.

If this does clean up the IM and only the honest sites are left standing then it’s a good thing, but I’ve a suspicion that it’s going to be hard to police, so after 1st Dec are we going to see a mass cull, I very much doubt it.

Dave

Posted on November 26, 2009 at 5:12 am

Jeff

Ha Jonny thanks for talking about this ,, it seems that most Big marketers do not have a clue about this or they are just ignoring this FTC stuff , Ether way they are not doing much to help the newbie’s ..

I am still very concerned about trying to promote click bank products , because there are thousands of cool looking websites on click bank that would need to be modified in order to comply with the new rules , so how can we find any thing to promote that will not get us in trouble ..

Now to repeat what jonny said I am not a lawyer , but I have listen to 3 or 4 on the web talking about this , and this is just some of the things that can happen to you , if the FTC comes after you,
There is a $ 11 thousand dollar fine Per Incidence , meaning if you send out thousands of e-mails that have many buying customers , And the FTC says your offer is fraudulent or misleading advertisement , Than you can be fined 11 thousand dollars for EACH customer that the FTC can prove purchased from you.
Also the FTC can confiscate your bank accounts , 100 dollars or 10 million dollars, does not matter .And they do not have to prove any thing before they confiscate your money , you have to prove you are not guilty.

From some of the opinions I have heard about the FTC I disagree in one respect , the FTC is not just some benevolent origination Just looking out for the public good , In many ways They are like the IRS and have unlimited power to destroy you , even if they make a mistake you are screwed,,
And They are not about to admit a mistake on any case that has attracted any Press what so ever ..

NOW I have heard that you would get a worning before any fines occur , and the offence needs to be very egregious for them to come after you , but there are no guarantees ,
Regardless all of this scarys the hell out of me and I think like others it is paralyzing me from doing anything on the web..

Thanks Jonny and Please help if you can.

Jeff

Posted on November 26, 2009 at 5:19 am

Peter Davies

Thats a very good post – I think at the end you sum it up well when you say that getting rid of the fake stories, hyped up claims and sticking to the truth cannot be a bad thing at all.

I for one when looking at a product never read this crap – i look at the structure/model of the product.

It is a minefield, I got through a few pages and the legal jargon make it very difficult to follow so glad you wrote this post.

Regards
Pete

Posted on November 26, 2009 at 5:37 am

Montana. URGENT!

Hi Jonny,Im from UK I have read your Blog Today, I think its Great as there is nothing more annoying than listning to a load of Bull S!
and looking at bank statements.UGH!! Any way I bought a product from you 7 monthsago,Iv not earned on line Not your fault,I know I WILL just as soon as I learn to PUT Video on my Blogs. Im older and slower. BUT I have learned so much from you, I can create Business BLOGS I LOve this. I have 4 Business Blogs Ready to go, I have promoted my sons Driving school on Google and iv FIRST page with 3 Blogs Thank You JonnyX. I read your emails and always shall.I think your good at what you do.PLEASE CAN YOU do a VIDEO on How to PUT Video ON Wordpress privately hosted BLogs! All I want to do is put the Video of houses for sale I have just taken with my Flip Video cam, onto my Blog? When I try it say its to big even though Flip converts it small, its not small enough! Do I need a soft ware ?if so Which one & where can I get It? (Flip dont get back & wordpress send you to forum where people wait 6mnth for answer) I Need to get answer Now.Please! Please Help me Jonny.
Kind Regards Montana

Posted on November 26, 2009 at 5:58 am

Donna Filipiak

Thanks for the great information Jonny. This has been a worry for me. I was afraid to try anything so you have helped clear up some of my concerns.

Posted on November 26, 2009 at 7:09 am

Jaamin

There is so much stuff out there everybody can get confused who is honest or dishonest, difficult to say online. I really hope all the bull shieeet will be gone and there will be more space for honest people.

Posted on November 26, 2009 at 7:52 am

Jimmy K.

Hey Jonny!
I must say that I’m some what for the FTC Crackdown.
I purchased and tested most of the products I consider a “5 Star Rating” product. Which includes your “Money Siphon System”.
I along with many other marketers and the general public are tired of a GURU spending so much time talking about his background and now he can do whatever he wants in life.
I will need to change my strategy as far as presenting the facts to a potential buyer. I believe ClickBank will be a very good source to accomplish my goals. They have the stats there for a marketer to show the top selling products and the gravity.
I believe if a person truly wishes to succeed, it matters not how much the GURU made or how many toys they have., Show what the product can do and can it work for me if I apply sound marketing skills.
That’s what sells a product. Forget the GURU Hype!

Have a GREAT HOLIDAY MY MAN!!!

Posted on November 26, 2009 at 8:05 am

A.L. Kangas

Very interesting information. I am putting together a video to sell on line. I am a real novice when it comes to promotion, but am learning as I go. The information shared here will not affect me as far as I can tell, but it lets me know what guidelines I need to keep in mind.
I have been scammed a number of times. Sent my $9.95 for a ‘complete’ information video and got a half hour of testimonials and no real information. Other than asking for another $39.95 for the real information. Sick of scammers and don’t really see a down side to this law.

Posted on November 26, 2009 at 8:48 am

G Gantchev

Hi Jonny,

I am tryinhg to get in Affiliate Marketing for over an year already, unfortunately with no results at all. Many times I was thinking to myself that most of these testimonials are fake and these marketers are scamps!
I am so glad that FTC new rules will take care of them.
Thank you
P.S …feel free to send me some more info.

Posted on November 26, 2009 at 8:59 am

Tess Smith

Hi Jonny,

I’m one of your followers & implementing the strategies that I learned from you over past few months. This is a BAD news for all of us. Just tell me what newbies like us are supposed to do in these circumstances. Please advise.

Posted on November 26, 2009 at 9:23 am

Mary

Johnny

Great post.
I for one do not believe all claims of making $1000 in a week or the testimonials.
I really think the new laws will be great.
I have invested $1000 in software ebooks and websites that teach you out dated technics.
It will be refeshing to see something that is honest.

Thanks for the post
Mary

Posted on November 26, 2009 at 10:17 am

Don Antonio

The only way to ensure affiliates use the products they recommend is to obligate them to buy them before they are allowed to become affiliates. This is clearly an interesting change of the game.

Posted on November 26, 2009 at 10:40 am

Timothy Maggenti

Jonny,

Nice, you really hit a nerve on this one. I agree with you the point to all of the lame laws is just tell the truth. Wow what a concept, I think that is one of the 10 commandments?

People that lie about their products and affiliates that peddle them that lie are going to loose in the end anyway. It is just karma, you lie you loose. Well except for lawyer guy that lives on the golf course that reruns the same product ever fricken month like it was something new and sends you 1,400 emails a day…
Oh, sorry about that, I did not realize I typed that outloud…

I did check the FTC’s web site out about a week ago when another affiliate I call him Mr. Pee came up with a lam condom product to protect you for the big bad FTC anyway.. darn fingers they have a mind of their own . . .
I really enjoyed the one sentence videos on the FTC website that said nothing. I think the lady just wanted to see and hear herself on video?

But if anyone that thinks that the big corps are going to change, its not going to happen. They already tell you that your going to have the oily, bleeding discharge when you fart etc.

I think the real problem is going to be people that make over seven digits, they are going to be the the ones that are going to hung from the gallows and made examples of. They will be checked and rechecked, but the small time operators who make less than 10k a month will go unnoticed because there is not enough money in it for the FTC to get…

Posted on November 26, 2009 at 11:01 am

Jevaughn Brown

… I rediscovered this particular quote last night & seriously, I think it fits PERFECT with the message of this post-article; the coming changes we’ll all have to make in our efforts.

“Never shrink from doing anything which your business calls you to do. The man who is above his business may one day find his business above him.” – John Drew

We as internet marketers/aspiring ones, had better be up for doing what our business here calls for us to do, even its unilaterally foisted on us by FTC non-businessmen. Yes: it will help clear up current fraud. No: the FTC is not in it JUST for that, any more than the IRS and the FDA are simply benevolent gentle giants protecting *The Consumer* and never ever being shady, mistaken or unfair. Hey just look at the details of how they smashed Frank Kern of all people back in the day and see.

I’m not discouraged in the slightest; I choose not to be. I figure hey, maybe its a hell of a fortunate “coincidence” I’m getting started seriously RIGHT NOW specifically “the Jonny Andrews way” in the face of these transformations, whatever they finally shape up to be.

Just gonna PAY ATTENTION and do my best not to give “Caesar” reason to pull out the big legal stick on me personally, however unlikely it may be for them to even notice my personal business online.

Oh well, at the core: Providing/Leading people to Value; Honesty; Integrity; Transparency; Building Relationships with customers… Nah, doesn’t sound too hard at all.

Peace, and I shall retweet.

Posted on November 26, 2009 at 11:56 am

Steven Smith

Hi Jonny,

I really appreciate this info. Keep up the good work. Since you are a successful internet marketer, could you please give me a suggestion regarding an online venture I could try….It’s really rough out there.

Thanks,

Steven

Posted on November 26, 2009 at 12:23 pm

Robert Eilers

I can see this as being a good thing for everyone involved (except those who insist on doing things unethical). This will weed out those who can’t market without big lies. Less competition for the ethical marketer will be a win-win for both the marketers and the customers. The customers will be presented with more credible marketing which will help in the long run to put their fears aside about buying online.

I believe this is a “no big deal”. If you are ethical then you’ll just change with the laws and move on. I don’t see these laws as being anything to really get worked up. Cut out the testimonials and let people know that you are an affiliate. What’s the big deal?

Posted on November 26, 2009 at 12:44 pm

Mike Russell

Hi Jonny,
It’s about time. Now perhaps buyers will be able to see real products and services, without being blinded by cleverly written bullsh#t.
The Clickbank issue could be serious for product owners though, maybe CB too, because some dumb-ass is bound to overstate the value of said wares.
The FTC have said they are likely to warn people first, so simply stop trying to hype stuff up, because nobody believes it anyway, and tell anyone you hope to sell affiliate stuff to that you will make a commission. If they don’t like that, then you probably didn’t want to do business with them anyway – refunds, being slagged off – why bother?

Posted on November 26, 2009 at 6:25 pm

Quita

Jonny and all

Iv had a good read through and pretty well every one is on the same level. Being as honest as possible. pick your testomonials wisely etc.

Iv been following these new laws for the last few months (yep might be starting officially as of the 1st December, but it has definatley been anounced, scrutinized by many and lots of explanations as to what it all means for us)

However my biggest concern is the affiliate program it self!!
It may eventuate to no longer being “free” as in having to buy the product first which is not really a bad thing but will create a little hesitance for those high priced products like phones, jewlery etc.
I think it has already started to a degree as I have had my website knocked back by a company that sells the product that I want. Apparently my site was great but believe it or not not old enough

Posted on November 27, 2009 at 4:46 am

Quita

Sorry got cut off from above.

My website has to be 6 months old before they will consider it. Plus I had a product name in the URL, again they werent happy.( have to change it rats!)

So even though the FTC law may be quite adaptable, the actual affiliate programs out there may become increasingly harder to join.
(Jonnny even stated above that it may be possible to get in trouble with you affiliates even though you dont know what they have written).
So my opinion is that Programs/products and companies will start making it a tad more difficult to join up with them and will put websites through a screening process to be accepted into their affiliate programs.Which I have to admit I dont blame them …………

Hope they dont make it to hard though. But then again once your in and the “rubbish sites” removed, we could all have a monopoly on our choosen “niche”

what do you think??
thanks Quita

Posted on November 27, 2009 at 4:56 am

LauraB

Thank you for the heads up about the FTC. I have heard a bit about it through the grapevine, but now understand it a bit more.

I will definitely be keeping an eye out for anything you have to say and can’t wait to actually be hearing from someone who will be speaking the Truth.*

Thanks from
Toronto, Canada

Posted on November 27, 2009 at 9:11 am

shirley bragg

I am a newbie and I have been ripped so many times that I lost count. The sad part about it is when a program says you have 60 days to cancel, yes you do but guess what, if it is digital and you cancel it, Clickbank will not allow you to purchase anything any more. So what good is the refund? My take on all this is people can put up anything as a testimonial. Those that are making millions are not telling what they pay for PPC, and other things they do to make money. The reason they are millionaires is idiots like me buying into it.

Posted on November 27, 2009 at 11:51 am

semjedi

lol, and how many “FREE BONUSES” did you have to give out to see those results?

this new regulation will effect only those who have no real marketing skill to begin with.

Posted on November 27, 2009 at 6:23 pm

Marc

Jonny, Great jobd and thanks for the heads up. Allthough openly and honestly is how I prefer anyway.

Let’s Roll!

Posted on November 27, 2009 at 8:46 pm

Mario Soto Jr

My Favorite part of all this is “you should personally never expect to make a dime and will potentially get facial mites just for having read this blog post”

This is my disclaimer for the next part. I am not an attorney or pretend to be in anyway. The Comment below is for entertainment purposes only. Information that you read on this comment, please have your own Attorney check out the information for yourself.

Ok past this Shirley mentioned on a comment that “Clickbank will not allow you to purchase anything any more” If you read the refund policy from clickbank read number 6

http://www.clickbank.com/refund_policy_faq.html
and I quote Clickbank for you
“6. What about customers who try to abuse the return policy?

Customers requesting serial or repeated returns will be blocked from making further purchases.”

I am not sure how many times you refunded a product but my personal experience I have never had an issue with a refund from clickbank ever. But I always do research when I am considering purchasing any product in any niche in our out of clickbank.
The best advice that I can give you all That was given to me by Jonny is STOP BUYING STUFF and Take action with what you know. Get Good in one area first then move on to the next.

It’s funny that people are saying I hope they don’t make it harder to get into affiliate programs. But CPA networks are not the easiest thing to get into. You have to apply first then get interviewed by them then you get approved, They have guidelines you need to follow for every offer you are promoting. So if they change affiliate programs like CPA networks you know I’m all for it. If they make it harder to apply that is fine by me as well.
That will take care of all those scammer’s out there.
For new People getting into the Internet marketing I don’t think it would be as difficult for them to comply with all this stuff as long as they find the right people to guide them through.

One more note on one of my emails that I use to join lists I can not count in both hands on how many people are quitting the Internet Marketing niche and heading for the hills. So in the long run the people that are going to be left are the true Teachers and the real deal.

So let them make Internet Marketing harder I welcome it. It will keep the real people in and the Hacks to go away.

Quita If you make create a website with a copyrighted name they will bring it down. I suggest in the future to make sure that they allow the use of there name for advertisement purposes. Usually if they have an affiliate program attached to it they will state it. If you are absolutely not sure Contact them and ask them. It doesn’t hurt to ask.

P.S. Sorry Jonny for hijacking your post hehe

Posted on December 2, 2009 at 4:00 am

Lois

Hi,
I first heard of this about a month ago and was very happy. I have always felt that a lot of the testimonals that you read was not on the up and up but I also felt if you have been in business for any length of time you can see through a lot of it. I think this will be a good thing for the rest of us that are trying to make a living the honest way. There had to be a stop to it somewhere along the line.

Thanks for the insite, keep up the good work.
Lois

Posted on December 3, 2009 at 11:15 am

cloe

I think it is a good for the rest of us regular, honest folks who are just trying to make an honest living online. Now we don’t have to compete with the lies that are being told online. Now everyone can start to make an honest living online.

Posted on December 7, 2009 at 5:21 pm

KAZEEM

Kinda weird this is what the internet should have been like in the first place, but now FTC wants to take the bad guys down but a lot of the good guys will fall too.

I believe that anyone trying to make an honest and decent living online will pull through.

Thanks for the heads up guys. You are the best!!!

Posted on January 26, 2010 at 7:17 pm

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