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  Testimonials: The FTC crackdown & 2 ways you can benefit from it...

  • Hi Friend,

    On Dec 1st the US Federal Trade Commission is bringing out new rules
    for advertising by testimonials or endorsements.

    Here is what one copywriter said...

    "My testimonials are coming down ... til I see which way the wind
    blows, for at least 6 months to a year."

    Incredible!

    Has the FTC really banned testimonials?

    No, certainly not.

    But they have set new 'guidelines' they plan to enforce.
    (http://www.ftc.gov/opa/2009/10/endortest.shtm)

    And I have found you a couple of ways that you might be able to
    work this to your advantage.

    But before we get to that,

    ---> What are the new rules for testimonials?

    A rough summary of the FTC's key new guidelines are that
    testimonials or endorsements...

     - will need to be 'typical' or include the 'typical' results along
    with them [that would crack down on lose weight, make money
    products, etc etc who have hidden behind the phrase 'results not
    typical'.]

     - "advertisers and endorsers may be liable for false or
    unsubstantiated claims made in an endorsement" [if you are the one
    claiming it then you better be ready to stand behind it. Sure.]

     - must include full disclosure [so freebies, kickbacks, commissions
    etc must be clear, and to simplify things don't give compensation
    for testimonials.]

    The wording in all these is loose, so it really comes down to
    how the FTC wants to apply these rules. That's the reason for the
    frantic comments like at the top of this email.

    But let's get to two bits of silver lining.

    1.  It's a really great time to get testimonials.

    Why?

    Here's a quote from copywriting legend, and ultra-level-headed
    marketer, John Carlton...

    "[Testimonials] remain powerful tools for anyone in business. (In
    fact, let's hope, real hard, that your competition gets so scared
    that they never use testimonials again in any way, shape or form.)"

    http://www.john-carlton.com/2009/10/a-big-steaming-cup-of-hysteria/

    Exactly!

    Zig when the rest are sagging.

    Go get more testimonials (or if you have none, get those first few.)

    Just make sure you can contact the person later, if you need to
    make changes once the FTC 'guidelines' settle in.

    2. If you are marketing online then here is some great training
    material courtesy of the FTC.

    It's from a guy I trained with, Jeff Walker, and Jeff is hands-down
    the best marketer I know for building frenzied word of mouth, and
    giving step-by-step for others to build it too.

    Jeff uses video Case Studies in his marketing, but the FTC ruling
    means from December 1st that has to stop.

    So before then, he's opening up all those Case Studies for a last
    chance to see them.

    I've just finished watching the four he put up today, and the final
    one was under 5 minutes, and a great example of marketing that is
    solid relationship building at the same time.

    But the Case Studies are only for this week.

    http://www.wordofmouthmagic.com/resources/plf/

    Regards,

    Martin Russell
    Word of Mouth Marketing... as if by Magic!
    www.WordofMouthMagic.com


    P.S. Testing the new FTC Disclaimer: If after opting in for Jeff's
    no-cost material you end up buying from him, then yes, I do get a
    commission.

    http://www.wordofmouthmagic.com/resources/plf/



    November 24th, 2009 at 8:29 am

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