• Home
  • You
  • Us
  • Services
  • Training & Speaking
  • Daily Blog
  • Hire Me

Category: ethics

Aug 17 2010

Snooping on Facebook: Not just for stalkers any more

I have one of the world’s best points of brand differentiation — I’m the only business blogger you know old enough to have a daughter-blogger! Lauren is entering her senior year as a journalism major and has been having some intriguing social media experiences. When she told me the following story I was frankly a little weirded-out.   Let’s see what you think about using Facebook as an investigation tool after reading my daughter’s guest post …

Since my last post on {grow}, I’m a year older, I’ve aced all my classes, started my own blog and developed a fondness for coconut ice cream.  Hope you have all been doing well.

But my hiatus is beside the point. Today I am here to tell you a story of intrigue and revelation … a story that might forever change the way you think about Facebook.

This summer I’m spending my time as a development intern for a private, non-profit foundation. One day I was asked to research a professional sports player — who was associated with my foundation — as a potential target for donations. Through public information, a little resourcefulness and my best pal Facebook, you may be amazed at what I found …

The hunt begins

To protect the innocent, we’ll call the professional sports player Dijon Shmoogley.  Fundraising is a sophisticated process and my large nonprofit foundation subscribes to many lists, archives and search engines to determine who might have a “potential to give” (i.e.: who’s got property, boats, salary, stock,  etc.) After exhausting my search through these traditional databases, I reached a dead-end. I found no indication of Dijon’s financial status.

Turning to the Internet, I learned that:

  • His brother’s name was Reginald, and he also had played sports in college.
  • His mother and father, Sarah and Frank Shmoogley live in Minneapolis.
  • Dijon was newly-married to a girl name Jenny Smith from Minneapolis, MN
  • His Facebook page is private.

Although I could not pin-down Dijon’s financial status, once I found that he was recently married I immediately began to look for his wife’s assets (isn’t that a vow … “I promise to share my boat, stock portfolio, antique china…”?) as an indication of his economic status.

Facebook takes over

Turning to my best pal …

  1. I searched Facebook for “Jenny Smith”… Ha!  2,000 entries.
  2. I searched Facebook for Reginald, Dijon’s brother. Found him. His Facebook isn’t set to completely private so I can view his friends (Thinking that he would be friends with his sister-in-law). He isn’t friends with any “Jenny Smith” but he is friends with his mom, Sarah Shmoogley who, in her Facebook picture, is next to a blushing bride … I just found a picture of Jenny Smith!
  3. I returned to the search for “Jenny Smith” and quickly find a matching picture of my bride. I opened her profile and it confirmed that her hometown and current city is Minneapolis.

I then went to the online site for the Hennepin County Assessor’s Office (Minneapolis) to search for properties owned by Jenny Smith. (THIS IS COMPLETELY PUBLIC! Go see for yourself!)

There are about 20 Jenny Smiths in Hennepin County who own property, but 16 are registered with spouses who aren’t Dijon Shmoogley. I search the remaining four properties on Google maps and rule out at least three of them for various intuitive reasons. Finally I get down to one rational possibility. But it is a shared homeownership with another woman — Amelia Bedelia.

Hmmm… If the two women are close enough to buy a house together, wouldn’t they be Facebook friends too? I go back to Jenny Smith’s Facebook page and sure enough there’s Amelia Bedelia. I have now confirmed Dijon’s home and am on my way to discovering a significant portion of his net worth.

Game.  Set.  Match.

Even with a name as common as Smith and Facebook’s security settings, I was able to confirm Dijon’s home ownership, value of the home, and other valuable information about the assets of the couple. Social media status updates also can provide other important clues — discussions of vacations at the lake house, promotions, investments and purchases. With this information, I tailored an appropriate fundraising approach and suggested giving level for the Schmoogley Family.

Another fundraising friend of mine grabbed a list of over a thousand new potential donors because a competing charity posted the names of their 1,500 largest donors on a Facebook event page.

I admit this is all a little weird but it’s real and it’s time to wake up. Facebook is not just about social networking. It’s also about social investigating.

Are you feeling a little nervous about this?

Lauren Schaefer is the world’s greatest daughter and will be looking for a job in about six months. I can vouch for her.

Filed in Case studies, customer acquisition, ethics, facebook | Mark | Comments (37)

Jul 28 2010

Twitter irrelevant? No, Advertising Age blew it

Now here is a headline that grabs the attention of any social media marketer: “Study: Most brands still irrelevant on Twitter.”

Only problem is the headline, which appeared in the digital version of Advertising Age yesterday, is bullshit. And I don’t use that word lightly.

If the headline writer and/or author had really read the report from digital agency 360i carefully and applied a little critical thinking, you would actually draw the opposite conclusion.

I am not a wild-eyed supporter of all-things social media. But I do want people to start looking at data critically before writing reports like this. Let’s look at the major conclusions, taken directly from the 360i report and see if Twitter is really irrelevant to brands.

CONCLUSION ONE:

“Twitter is primarily for people, not corporations. Those of us in the marketing industry tend to see Twitter as a marketing or professional networking tool, but it’s important to remember that it is a consumer-dominated medium. More than 90% of tweets come from consumers and only 12% of consumer.”

The AdAge article used this information to claim that “brands are finding themselves on the outside of the conversation.”

So here is the question that should have been asked:  How do you really know (and measure) if a brand was tweeting or not?  You see, the most effective conversations are not occurring between corporate icons and the masses. They are taking place between individuals representing their brands.

Here’s an example. Over the past few weeks I have tweeted back and forth between Bill Robb, the social media marketing director for SAP.  Bill didn’t “court me.” We developed a mutual admiration for each other and began a <shudder> “conversation!”  The tweets led to deeper discussions via email, which eventually led to a blog post about SAP and their cutting-edge marketing approaches. That blog post was tweeted out at least 70 times, had several thousand page views, and was referenced in two other blogs with who knows how many readers.

Now, did any of that activity show up on the chart above?  No. Was the SAP brand kicking ass on Twitter? Yes.

If you want another example of brand beauty personified on Twitter, check out @SharpieSusan who tweets up a storm for Sharpie pens.  Is Newell-Rubbermaid getting credit for a “marketer conversation?”  My point is that this metric is irrelevant and the AdAge conclusion is worse.

CONCLUSION TWO:

“Twitter makes the private space public. While marketers have a voice in the mix, Twitter remains an important tool for listening to what consumers are saying in a mostly un-filtered, un-moderated environment. There are ripe opportunities for brands to get to know their customers via online listening.”

“An important tool for listening.”  Hmmm.  Does that make Twitter sound irrelevant to you?

The report goes on to say that when it comes to talking about brands on Twitter, consumers are largely sharing news or information about the brand (43%) or reporting use of or interaction with the brand (35%). About one fifth of tweets mentioning brands demonstrate an outward opinion of the brand.  Irrelevant?  The opportunity to use Twitter for consumer research is enormous!  And the report says so.

CONCLUSION THREE:

“Companies tend to talk at people – not with them. The opportunity for marketers to become part of the conversation remains vast. For example, many brands use the channel to pass along information, but fail to capitalize on opportunities to truly connect with consumers via two-way conversations.”

If there is a vast opportunity, why is that irrelevant?

The report’s final conclusion states: “… there remains a largely untapped opportunity for brands to create deeper connections with consumers via earned media and to learn more about what motivates them with online listening through Twitter.”

I don’t think I need to say any more about the content of the report and the article.  AdAge simply blew it.

To make things much worse, the 360i report was based on a study of just 300 tweets per month over six months.  Are you KIDDING ME?  A study of national brands based on 10 tweets a day?  AdAge, do you really think that is a statistically-significant sample size to base a conclusion like this?  And 360i, you need to be taken to the shed out back for even publishing a report based on that sample size.

We already have a problem with the social media fluffs spewing mis-information and half-truths. When an article — even a bad one — comes from a reputable trade publication like AdAge, it gets reported as fact and paraded around the boardrooms of America.  This blog post won’t be, unfortunately.

Filed in branding, ethics, research, twitter | Mark | Comments (33)

Jun 29 2010

Did Mashable cross a line?

Yesterday, something happened on Mashable which illustrates one of the biggest threats to the social web, to business, and maybe even democracy.  I’m really interested to see what you have to say about this incident.  Let’s start with the lead paragraph from their post:

The Italian Windows website “Windowsette” somehow managed to get a hold of a super-secret, highly confidential PowerPoint presentation outlining many of Microsoft’s goals and plans for Windows 8. Apparently this sensitive data (complete with UNDER NDA watermarks) was just found sitting around the Internet.

If you haven’t been around the corporate world, NDA stands for “non-disclosure agreement.”  This means that whoever had these slides had signed a legal document to keep them secret.

The Windowsette site said it learned of this leak from “Andrea Martinelli.” I have no idea who that is but it seems unlikely she just found secret internal Microsoft documents “sitting around the Internet.”

So here are the questions I have for you:

  • Mashable has become the journal of record for the social web. Maybe they’ve been trained as journalists, maybe they’re not.  Does that make a difference?
  • Is it ethical for them to publish a “super-secret, highly confidential” internal document that could be extremely damaging to Microsoft?
  • Is it responsible to report on a document whose source was a single associate of an obscure website in Italy?  How can we even know these slides are real? Isn’t it easy to create official-looking PowerPoint slides?
  • The Mashable post was tweeted almost 1,000 times and included in about 500 Facebook sites.  For many people, this article has become “the news.” What are the implications when non-journalists create the news?

I’ll tip my hand here and say that my undergrad was in journalism and I believe this institution is essential to democracy.  What’s going on in most blogs today is not journalism.  Usually that’s OK.  But with the dramatic decline of the traditional press, whatever we have left on blogs is going to become our de facto news of record. Like Mashable.

In the end, this incident will have a shelf life of about one day and it’s easy to let a big company like Microsoft be our target. But what if this unsubstantiated piece of news was about your secret new product development?  Your company? Your congressman? A terrorist threat in your community?

What if it was about you?

Filed in Case studies, Legal implications, blogging, ethics, futurist | Mark | Comments (35)

Jun 22 2010

Why it’s ridiculous to argue about ghost blogging

It seems like “ghost blogging” — the practice of penning posts for others –  is always under attack.

Jon Buscall wrote a fine piece about it recently as did Mitch Joel.

Philosophically I agree with them.  In a pure and perfect world executives should write their own copy.

But practically speaking I don’t agree.

Here’s why.

  • It’s not a pure and perfect world. Ghost writing is going to happen and it always has.  Wishing and pontificating will not make it different.  So why not at least do it well?
  • Most executives don’t have the time or ability to blog consistently and effectively. So if they don’t get help, it just won’t happen. Isn’t it a good idea to help bring their ideas to life?
  • Personal connection and “community” is probably less important to somebody at the “rockstar” level of chairman.  I know this will get hollers from the crowd that community is “everybody’s business” — and to some extent that is true, but again, I’m being practical. Most CEO’s are not being compensated to build community through a blog.
  • The chairman does not pen his own speech, yet nobody questions that they own it. They don’t write the shareholder’s letter in the annual report, yet this is deemed as authentic. Do you think Former GE Chairman Jack Welch sat there and pecked out his own book? And yet it is seen as his.

So why do so many people seem to want to put blogs in a different class of writing?  In the world of corporate communications it could be argued that blogs are even less important and critical than a major speech or a document being submitted to the SEC.   Why are people on a quixotic mission to fight against reality?

Here’s a better solution. Establish guidelines to have an effective ghost blog in an effective and ethical way.  A few months ago there was a debate on this topic on {grow} that resulted in some guidelines for ghost blogging:

  • The host executive should provide general ideas for a ghosted blog post and a few bullet points expressing key thoughts for the writer to work from. Obviously the writer needs to spend as much time as possible with the host to get a feel for their language and opinions.
  • The executive should approve every blog post before publishing under their name.
  • Content aimed at a personalized connection – such as responses in a blog comment section – ideally should be authored by the executive, not the ghost writer.
  • Be sure there is an approval process in place that can handle the need for flexibility, responsiveness and the opportunistic tendencies of the social web.
  • Guidelines of the corporate blog process and a list of blog contributors could be contained in an “about” section.

Do these make sense?

Filed in Blogging best practices, corporate communications, ethics | Mark | Comments (43)

May 26 2010

When parody becomes a corporate PR disaster

When does online parody cross a line?

By now you’ve probably become aware of the “fake” BP global public relations account on Twitter spewing humorous observations such as:

“We feel terrible about spilling oil in American waters, we’ll make sure the next spill happens where the terrorists live. #bpcares”

“Just wrapped up a meeting with the EPA. Terry kept farting out loud at all the right moments. Not sure how he does it, but it’s SO FUNNY!”

“Oh man, this whole time we’ve been trying to stop SEAWATER from gushing into our OIL. Stupid Terry was holding the diagram upside down.”

According to Ad Age, the account started last Wednesday afternoon with this tweet: “We regretfully admit that something has happened off of the Gulf Coast. More to Come.”

Fewer than 50 tweets later, the feed had nearly 13,000 followers — compared to the 5,000 or so at the “real” @BP_America — and as of today, the account had about 40,000 followers.  Its humorous blasts have been re-tweeted by everyone from filmmaker Michael Moore to singer Michelle Branch.

Toby Odone, a spokesman at BP, told Ad Age: “I’m not aware of whether BP has made any calls to have it taken down or addressed. People are entitled to their views on what we’re doing and we have to live with those. We are doing the best we can to deal with the current situation and to try to stop the oil from flowing and to then clean it up.”

While there have been plenty of fake Twitter accounts before, perhaps none has spread so rapidly or gained this kind of momentum. The timing is right, the content is superb, and people are eager to connect emotionally to anyone poking fun at the easy target.

Let’s take a look at some of the realities and implications of this development for our own businesses.

1) Is it legal?

According to Twitter’s guidelines, it is perfectly acceptable to set up accounts that parody real companies, celebrities, etc. as long as it is clear that it is a parody. Their rule states:

The bio should include a statement to distinguish it from the real identity, such as “This is a parody,” “This is a fan page,” “Parody Account,” “Fan Account” or “This is not affiliated with…”

The account should not, through private or public communication with other users, try to deceive or mislead others about your identity. For example, if operating a fan account, do not direct message other users implying you are the actual subject (i.e., person, band, sports team, etc.) of the fan account.

As of today, the fake account bio reads: “This page exists to get BP’s message and mission statement out into the twitterverse!”

So no, it is not an account that meets Twitter’s standards. Further, it is causing a lot of confusion because many people are actually taking this as a serious BP account.

2) What should BP do?

BP has much bigger PR problems than a rogue Twitter account.  And making an issue of it and spoiling the fun would probably just heighten negativity against the company.

However, if I were working for BP right now <shudder> I would at least approach Twitter and ask it to enforce its own rules and declare clearly that this is a parody site.  Given the number of people who actually think this is a real account, there is a high probability that quotes from this parody site could start showing up as legitimate quotes from the company and stress the PR department further.

Really, BP’s only real option is to withstand the public fury and and eliminate the core problem — the root cause — at the source deep in the ocean and spreading across our shores. And that is going to take years.

3) What should YOU do?

The social web has imparted a whole new sense of meaning and urgency to PR planning, monitoring and response.  How have the rules changed? Or have they? What are your thoughts?

Filed in Case studies, Public relations, Social Media Policy, branding, corporate communications, ethics, twitter | Mark | Comments (23)

Mar 24 2010

Is bigotry good for business?

The comment sections in some blogs, and many online community newspapers, is becoming a cesspool of bigotry, sexism and intolerance. Nobody has struggled more with the idea of online community than the American press. 

I’ve wondered why newspapers, who have so staunchly defended the integrity of the published word, would suddenly open the floodgates of stupidity just because the forum has moved to the Internet.  My conclusion: Bigotry must be good for business.  My friend Jack Lail disagrees.  Jack is the much-respected News Director of Innovation for the Knoxville News Sentinel and a pioneer in online media.  He’s re-thinking the newsroom in the context of the digital era and dealing with these difficult issues every day.

Jack and I sparred on his blog recently and he has agreed to a point-counterpoint format for {grow}.

Mark’s point:

If I submit a letter to the editor of the newspaper and comment on a news story or issue, it has to come with clear proof of who I am, and even then might be subject to editing for appropriateness. Why then, would the same newspaper allow the public commentary in their online versions to turn into a virtual free-for-all of hate?  It just doesn’t make sense except that if the newspapers didn’t allow that liberal allowance for sensationalism, another media outlet or blog will — and there goes the readership and the page views that drive advertising revenues, just when traditional media need it most.

Nothing drives page views like controversy, and nothing drives controversy better than a redneck pissing match fueled by the anonymity of an online comment forum. 

Some newspapers have justified this practice by explaining that our country has an important tradition of anonymous dissenters like Benjamin Franklin and Thomas Paine.  But the irony is, serious dissent found on an op-ed page would require editorial identification, while the ugliness in the comment section goes unabated.

I believe the press has applied their standards inconsistently for economic reasons. They fear the anonymous comments (and readership they generate) will go elsewhere if regulated online. True?

Jack’s counterpoint:

The short answer is Web site operators don’t have the same legal liability in online comments as print publishers have with printed letters to the editors.

Yes, I believe comments increase the “stickiness” and time on site and a sense of community that articles alone can’t achieve. Anecdotally, I often hear people say the comments were better than the story (maybe in an entertaining if not enlightening way).

But basically, I don’t view comments as “letters to the editor.” I often find them more akin to callers on talk radio, where people are identified as “Jim” or “caller from Knoxville.” (If you applied the “same rigorous identification standards” to radio call-in shows, they wouldn’t have any callers.) The dynamics of online story comments are similar to what happens in forums and fairly open mailing lists.

They are, I think, a participatory experience unique to the online medium and whose benefits outweigh its negatives. That said, we’re still grappling with ways to minimize the negatives without stifling the speech.

Do we have story comments merely to generate additional page views? Maybe, but I suspect the cost of managing comments negates nearly all of the additional revenue. A page view on a news story is worth at best just a couple cents.

As Google’s economist Hal Varian recently said: “The fact of the matter is that newspapers have never made much money from news.”

Where does the {grow} community come down on this issue?   Over to you …

This dialogue was inspired by a post that originally appeared on Jack’s excellent blog, Random Mumblings. His original post also contains many important references on this issue.  For another timely perspective on the subject of hateful comments, read Jeff Jarvis’ blog post this week.

Filed in Traditional media and advertising, economics of social media, ethics | Mark | Comments (10)

Mar 02 2010

It’s time to draw the line on social media disclosure

Perhaps by now you’re heard of the “Please Rob Me” site that highlights those on Twitter disclosing that they’re away from their homes.

While the site is kind of funny, it draws attention to a serious point — disclosure of detailed personal information, including your precise physical location, will lead to crime. Notice I didn’t say MIGHT lead to crime. It is inevitable that the bad guys are going to figure this stuff out. They always do.

Last week I saw my first tweet that actually had a map attached to it. The stalkers can not only find you, the technology is telling them how to get to you.  Or your empty house.  Or your kids.

I’m particularly concerned by this emerging generation who is de-sensitized to what they’re sharing about themselves.  They’ve been conditioned to put everything out there all the time, so why not tell everyone where you are, too?  They’re actively and willingly teaching The Machine their personal habits, behavior patterns and hang-outs, just so they can be named “mayor” of a location on Foursquare or receive a free latte at Starbucks.

Where corruption can occur, corruption will occur. It is only a matter of time before a tragic crime draws attention to these serious issues and people start taking action, perhaps even legislation. Let’s not wait for that, OK?

As an individual, and especially as a parent, I think we need to draw the line on certain social web behaviors.

  • Actively teach your kids to be net-savvy. Instill a healthy dose of paranoia into their mindset.  Teach them about privacy settings and being Internet “street smart.”
  • Take a view that Internet access is a privilege, not a right. Set clear expectations and limits. If a child does something to endanger themselves on the Internet, there should be consequences, just as if they had wrecked a car or set a fire in the kitchen.
  • Personally, I would forbid my kids from using Foursquare or any technology that reveals their personal location at  a point in time.
  • Be involved in what they’re doing. Know enough about the technology to ask the right questions. Look at who has friended them and what those people are saying to your kids.  Until you are convinced they can demonstrate mature judgment, I don’t think kids have a right to Internet privacy.

A man told a story yesterday on a news report on Internet safety that as a precaution, he follows every one of his young son’s Facebook friends. “I’m a 39 year old man,” he said. “And these kids automatically follow me back even when they don’t know who I am. And their parents never question it either. It just shows me how dangerous this could be for young kids.”

If you’re a parent, deal with this. Don’t ignore the issue or avoid conflict with your kids over the family “privacy” battle.  Will you leave a comment and let me know what you think on this issue?

Filed in Corruption on social web, Legal implications, ethics, sociology | Mark | Comments (24)

Feb 12 2010

A strategy for dealing with Twitter spammers

Part 5 of a series

Writing a series of posts on Twitter scams has been pretty depressing.

I found there is a thriving subculture of deceivers that is bizarre and disturbing. The scammers exploit the elderly, the vulnerable, the under-educated, and the desperate.  This is typical: A Twitter page of a friendly looking man who is a “Husband, Dad, Blogger and Entrepreneur” peddling this product: From Food Stamps To 7 Figures Online Free Video.

The scam sub-culture blogs about dodging regulations and adjusting tactics to capitalize on loopholes.  “Best practices” spread at the speed of light and the pyramid schemes can vanish behind the social web’s cloak of anonymity, free access and fake accounts. The scum has become more powerful through the recession, persistent unemployment and evolving technology that feeds their need to deceive.

The mere fact that I wrote articles containing the words “MLM” attracted automated spammers that nearly snowed me under with deceitful tweets.   I am sickened by the vast resources devoted to tricking us into clicking.

What can be done about it?

On a macro-level, very little.   Most regulations or policies could also hurt legitimate enterprises.  We have to take the fight to the streets.

Here are some ideas to help you fight back and at least take control in your part of the blogosphere.

Use Twitter “report for spam” option.  Any time I am spammed by porn-peddling, teeth-whitening, Trump Network sludge, I hit the report for spam button. Twitter seems to be processing at least some of these requests manually to avoid mob-rule against legitimate but unpopular tweeters, so I don’t really know what it takes to get people kicked out.  Just do your part. If enough people take the time to do it, it is in Twitter’s best interest to figure out a way to handle it.

There’s an app for that? — There is a new app called Stop Tweet that may provide hope to the idea of automatically blocking some spammers.  This utility allows you to tweak your personal settings to block and report people based on two tell-tale characteristics – no or low number of tweets and a high following-to-follower ratio.  It can also show you who among your followers who is a known spammer.  I tried this app out and unfortunately it did block several legitimate small businesses just starting Twitter accounts.  Play around with the settings and let me know what you think.

Separate email addresses — I have one email address I try to keep “pure” for correspondence with real people and another one I use for ANY app, service, or website. I even use my “spam” address when posting comments. Face it, it is only a matter of time before a database is hacked and all your identification and passwords violated. Minimize this inevitable risk by containing it to one account.

Mind the basics — You know the routine. Use strong passwords that are long, a mixture of letters and numbers, and nonsense words unrelated to any personal information. I just did research for a client project that showed the number one password for elderly people is “password.”  Help educate your loved ones, too.

Ignore them — Don’t be tempted to do what I did and explore the spam underworld. Don’t visit their sites or ask for more information, even in fun. If you respond to their spam, you’re encouraging them to continue, and they only need a tiny response to be profitable. Take my advice based on experience — ignore them completely!

What are YOUR strategies for dealing with the spam tsunamai?  What could Twitter do to step-up to the problem?

Part 1 in the series on Twitter’s Biggest Scams: Multi-level marketing

Part 2:  The teeth whiteners

Part 3: The Twitter follower scam

Part 4: The Trump Network

Filed in Corruption on social web, Social Media Policy, Social Media Strategy, Social Media best practices, Twitter best practices, economics of social media, ethics, twitter | Mark | Comments (9)

Feb 11 2010

Twitter’s Biggest Scams Part 4: The Trump Network

Part 4 of a series

Yes, it’s THAT Trump.  “The Donald” is actually behind this Multi-Level Marketing (MLM) program.  A key difference between this and the other MLM programs explained this week is that there is an actual product exchanging hands – nutritional aids.

The Trump Network was launched in the fall of 2009 — actually a re-branding of a pre-existing 12-year-old company — apparently endorsed by Trump himself.

They sell vitamins and supplements, which are popular with many other recruiting MLM companies. It costs $48 to join the program, and then you buy a marketing kit for $497 to start selling. Trump pitches it as a “gift” to the recession-wounded America, and says it is geared toward making Americans healthier.

Like a lot of MLM companies, it’s light on product information and heavy on buzzwords (the recession, the national debate over healthcare, green/organic product popularity). The actual product being sold is an afterthought on the website, highlighting opportunities in the “explosive health and wellness wave” instead.

Becauset they sell vitamins, The Trump Network can skirt being called a ”pyramid scheme” but it still looks that way in practice.  People who join the network earn most of their money from enrollment fees and maintenance costs. The independent “distributors” are then pushed to recruit more distributors of their own. In many schemes of this kind, they are required to buy more inventory than they can probably ever sell, shifting focus toward recruitment as a means of re-couping their investment, which is unlikely.

One MLM resource website did a “review” of the Trump network and explained the “get rich” process:

“You call your sponsor, and they tell you what they were told, which is basically useless, and so you fall for the most gullible, stupid strategies that you could possible engage in – depending on your friends, neighbors, and relatives to make you rich.”

I think one of the most disturbing aspects of this initiative is the judgment of Donald Trump to lend his name to something that is built on such shaky ground. Here’s a guy whose brand is synonymous with the gold standard of quality – why jeopardize his brand by implying  riches are at hand to people who are probably suffering?

Note: some of the debate in the comment section of this post focuses on the real value of the Trump brand name. This is addressed in WSJ article on a court case on this topic: click for article

Part 1 in the series: Multi-level marketing

Part 2:  The teeth whiteners

Part 3: The Twitter follower scam

Part 5: What to do about Twitter scams

Filed in Corruption on social web, economics of social media, ethics, twitter | Mark | Comments (8)

Feb 10 2010

Twitter’s Biggest Scams, Part 3: Building Wealth Through Twitter Followers

Part 3 of a series

“EXTREME traffic and EXTREME income!”  the tweets scream at you. How is anybody making money off of this ridiculous offer?  Let’s investigate the “Build Twitter Followers” scam:

There are many sites dedicated to this scheme, but the one I investigated was The MLM Mastermind System.

After submitting your name, email address, and phone number (we used fakes), you are redirected to one of the longest, strangest web pages I have ever seen. It goes on for miles! There are dozens of testimonials, anecdotes, and metaphors to explain why it’s imperative for you to expand your network, create new leads, and brand yourself to start earning money.

The spam-meisters explain that if you use their system, you can do all of these things on “COMPLETE AUTOPILOT” and start raking in the cash for free, with zero effort.  As you work your way through the page, there is not a single mention of a product of any kind. You grow your business by suckering other people into growing their business, which is growing more people to grow their business, ad infinitum.

There are all the telltale signs of a pyramid scheme—promises of get rich quick, low risk, high gain, work from home, etc. The system they describe for building this network consists of software tools that will perpetuate the type of spam Twitter messages we frequently receive. These are the terms to buy into the system:

“So here’s the thing, After your 7 day trial period for only $1, the ENTIRE system is still only a measly $49.77 a month. And you don’t even have to pay that until you’ve already started USING the system, and seeing how profitable it really is. After that, for literally a buck and a half a day you will be at THE cutting edge of this industry, and using technology to build your business easier than most could imagine.”

Unwilling to surrender my credit card or Twitter account information, I can only guess at what happens next. There are volumes of reports across the web about how companies like this use your information — charging exorbitant fees, signing you up for other similar services, and other types unsavory exploitation.

Since it’s all automated, as their network expands, they can tweet these messages every few seconds, and only a very small fraction of the people that receive the messages need to click through and sign up for it to become profitable very quickly. As it grows it creates a large, viral, financial ecosystem of its own.

Tomorrow: The Trump Network.

Part 1 in the series: Multi-level marketing

Part 2:  The teeth whiteners

Part 4: The Trump Network

Part 5: What to do about Twitter scams

Blog Widget by LinkWithin

Filed in Corruption on social web, economics of social media, ethics, twitter | Mark | Comments (12)

« Older
  • Comment Of The Week

    From Shelly Kramer
    "I tend to agree with (Pete) Cashmore. Privacy is dead. Figure it out. Do something else if you want to hide. Municipalities are using Google Earth these days to see who has pools and cross referencing that against who has paid “pool taxes” …. and this is only the beginning.

    Be who you say you are. Protect what you can in an intelligent way. Listen to people like @burgessct who knows a lot about protecting yourself online and writes on the subject often, and use your noggin. Oh, and don’t do (or say) anything you wouldn’t be proud to have associated with you and your brand."[more]

  • Recent Comments

    Suddenly Jamie: Travel safe & come back soon. We'll try to be ...
    Kristen Daukas: Have a wonderful trip!! Hopefully you'll have a lo...
    Dr. Rae: This Newbee is resending... Actually, it’s th...
    Dr. Rae: Looking forward to our talk Mark :) BTW the ? o...
    Mark: @Sally -- You are just so hilarious. Not. I'll mis...
    Dr. Rae: Bon voyage Mark! May your {grow} light shine wher...
    Eugene Mandel: Hi Mark, This sounds like an awesome idea! Too ...
    Sally G.: FINALLY ~ a two week break from your voice!! I ...
    Mark: @Jenn + @Steve -- Thanks for your comments! Glad ...
    Steve Dodd: Perfect, absoulutely PERFECT!!! Chandra you are pr...
  • Connecting with Mark

    Connecting with Mark

    Twitter: @markwschaefer
    Facebook: http://bit.ly/aKxVCo
    Web: www.businessesgrow.com/
    LinkedIn: http://tiny.cc/u6DJZ
    eMail: mschaefer700@gmail.com

  • Welcome to {grow}

    MARK W. SCHAEFER

    My PhotoYou’re in marketing for one reason: Grow.

    Grow your company, reputation, customers, impact, profits. Grow yourself. This is a community that will help. It will stretch your mind, connect you to fascinating people, and provide some fun along the way. I am so glad you’re here.

    -Mark

  • The Archives
  • The Archives

    • September 2010 (1)
    • August 2010 (17)
    • July 2010 (17)
    • June 2010 (15)
    • May 2010 (18)
    • April 2010 (19)
    • March 2010 (21)
    • February 2010 (24)
    • January 2010 (18)
    • December 2009 (21)
    • November 2009 (17)
    • October 2009 (22)
    • September 2009 (21)
    • August 2009 (27)
    • July 2009 (30)
    • June 2009 (15)
    • May 2009 (26)
    • April 2009 (11)
  • Categories

    • B2B and social media (50)
    • best practices (35)
    • blogging (42)
    • Blogging best practices (43)
    • branding (22)
    • business relationships (58)
    • business strategy (56)
    • careers (31)
    • Case studies (51)
    • corporate communications (17)
    • Corruption on social web (10)
    • customer acquisition (31)
    • economic development (14)
    • economics of social media (58)
    • eMail marketing (1)
    • ethics (29)
    • facebook (5)
    • Foursquare (2)
    • futurist (20)
    • Google techologies (5)
    • humor (29)
    • Internet marketing (22)
    • Leadership (3)
    • Legal implications (7)
    • LinkedIn (2)
    • Marketing best practices (43)
    • Marketing Solutions (15)
    • marketing strategy (40)
    • Personal (10)
    • personal branding (22)
    • Personalities of the social web (17)
    • Public relations (3)
    • research (31)
    • ROI and measurement (31)
    • social media (79)
    • Social media and politics (2)
    • Social Media best practices (77)
    • Social Media Policy (26)
    • Social Media Strategy (40)
    • sociology (33)
    • time management (20)
    • Traditional media and advertising (25)
    • twitter (50)
    • Twitter apps (5)
    • Twitter best practices (44)
    • Video blogs (1)
    • YouTube and video (12)
  • EatonWeb Blog Directory
    Marketing Blogs - BlogCatalog Blog Directory
    Marketing Blogs - Globe of Blogs Blog Directory

    B2B Marketing

    Blog of the Year
    All Top

(e) info@businessesGROW.com
(o) 865.456.1939
(f) 865.951.2124