Ok, first things first. As Brian Clark of CopyBlogger said, 65.2 % of all statistics are made up on the spot. So, yes, I pulled this percentage number out of thin air based on my experiences with most sales letters and after reading the updated FTC guidelines (which could be found here). If you’re lazy to read or just feels like you don’t want to waste time reading 8 paragraphs article, I’ll summarize them into points form for you.
1. When the results you put on your sales pages are not typical, you will be required to clearly disclose the results that consumers can generally expect. (Ex. John earn $500,000 in 30 days. But not everyone is John, most others will only earn $500 in 30 days)
2. Bloggers or word-of-mouth marketers who make an endorsement must disclose the material connections they share with the seller of the product or service. (meaning: they need to state if they got paid doing it and that they receive the product for free.)
3. Celebrities also need to reveal if they got paid for endorsing the product.
4. Researchers and doctors must reveal how well they have tested and understood the product benefits before endorsing it.
What’s My Problems?
First, if you’re a super honest blogger or affiliate marketer who never once make an outlandish claims on your review and pre-sales pages. You’re safe. And if you’re a product creator who also never make an outlandish claims and testimonials in your sales pages. You’re safe. And, if you’re none of the two but are not living in the US. You’re safe as well. Since I’m living in Sydney, I’m safe. But just to make this post longer ^-^, I’ll just put some of the problems I have with the updated guidelines.
My first problem with this updated guidelines is it’s too vague. I mean, if you put an outlandish figure, then you have to say what the typical number is, like my example above. But, what if I put my top most results in testimonials but I also put my lowest results? Would that be legal then? And what If i only tested my product on 10 people…and they all got TOP results…but the buyers would not get that, does that mean I am breaking the law? There are loads of questions still waiting for answers.
My second problem with it is that it just creates a higher barrier of entry. This updated guidelines will have profitable marketers magically appear incorporated and hosted in the BVI or other overseas location. And then of course the next logical step is that you will see a slew of affiliate networks “relocating” overseas with just their “support” staff being “outsourced” and US based. Since both the drivers of the traffic and the paymasters can all effectively and virtually relocate “overseas” it will be nearly impossible to enforce for serious affiliates and just present a higher barrier of entry into the industry, which means less novices and more for the established.
So, I noticed that the new FTC guidelines is not finalized yet and there will definitely be some more improvements and details regarding this new guidelines. Hopefully for the better. Feel free to comments and tell me what you think about it. Or tweet it if you like it.
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{ 2 comments… read them below or add one }
Wow, this guidelines will definitely affect most of the people with online business out there as sales page is one of the important structure in online business world.
Thank you for the tips. It seems we have to wait further for the further guidelines from FTC.
@ Huzzer
I mean the big internet marketers or business can just change their sales page to not reveal exact numbers (like, Lose 30 kgs in 7 Days) and I think they should be fine. And maybe also change their testimonials here and there. Or they can just move their hosting service and business registration to somewhere outside US. ^-^