Tricia of Tricia’s Musing’s wrote a post describing PPP Direct, and, interestingly, got a response from Jarrod of Sponsored Reviews.
Tricia posts reviews for both Pay Per Post and Sponsored Reviews, and Jared is concerned that advertisers at Sponsored Reviews will check her blog out, notice she accepts reviews for $20 and then negotiate directly through PPP direct. He then wonders:
We spend a lot of money promoting the blogs in our system and sending you guys work.
Any suggestions? am I crazy to think that we should not continue sending you advertisers?
I thought about this for a bit, and I have to say: I don’t think Jarrod is crazy.
I think Sponsored Reviews is threatened by the existence of PPP Direct. Advertisers will check out a blog before accepting bids, see that a blogger also uses PPP Direct and try to negotiate that way. Advertisers will do this because it’s in their interest to do so.
So, Jared really does have something to worry about. But, this is what happens in the free market.
This means that Jared needs to figure out what to do and rather quickly.
However, the correct response is not to deal with Tricia, or any individual blogger, personally. The correct response is to talk to his legal reps and figure out whether or not to change his TOS. Likely he can change them to prohibit bloggers from posting “hire me” type advertising on their blog. He could require them to display Sponsored Reviews advertising. He could do any number of things including keeping the TOS as they currently are: That is, permit bloggers to post PPP direct badges and still participate in Sponsored Reviews.
But the deal is this: Whatever he does, he need to put this in his TOS and require it of all participants.
Of course, whatever Jarrod does, Sponsored Reviews’ TOS will make his program either more or less attractive to both bloggers and advertisers. If the new TOS prohibit PPP Direct, each blogger will then need to decide whether they prefer PPP Direct or Sponsored Reviews. Which program they select will depend on both how much money they think they can make with either program and how easy the programs are to use.
Honestly, I don’t know what Jarrod should decide about his TOS. If he prohibits bloggers from posting PPP Direct ads, he risks losing lots of bloggers; if he permits it he risks advertisers going directly to bloggers. These are risks he’s going to have to weigh and decide.
It’s a tough call.
But, strangely, I do have two cents for Jarrod, and they have little to do with his TOS. Here’s my two cents: Jarrod should imitate PPP and regularly offer opportunties for bloggers to post reviews about Sponsored Reviews. He would gain two things this way: 1) He’ll get feedback on whether or not the system is convenient for bloggers and 2) The blog readers will learn of the existence of Sponsored reviews. Some of those readers are advertisers- some are publishers. Jared needs to get the word out to both.
One of the big reasons PPP is winning is they are getting a huge number of Posties on board and the Posties are describing the program because PPP periodically advertises using their own system: PPP. It happens that many posties are happy because they joined, landed an opp within a 24 hour period and they actually got paid less than 32 days after they first joined. These happy posties are sharing information voluntarily and also because PPP periodically advertises themselves using their own service.
In the long run, Posties talking about PPP will also bring in advertisers who otherwise would never have heard of PPP. Bloggiers posting about Sponsored Reviews would bring similar benefits to Sponsored Reviews. But if Sponsored Reviews is advertising, I haven’t seen the ads- and I suspect I would because I read blogs that post for Sponsored Reviews.
Jarrod needs to demonstrate his confidence in Sponsored Reviews by using his own service to advertise Sponsored Reviews.