At yesterday's 2006 Corante Innovative Marketing Conference, Larry Weber had this to say about word of marketing: "Compensation is a big red flag for word of mouth marketing.....true word of mouth is transparent recommendations."
This was said at a conference at which at least a few in the audience were engaged in that very thing -- coming up with appropriate ways in which to reward people who spread the word about their products and brands. No one questioned him on it at the time, but I had a couple of conversations afterward with a few attendees about it.
I don't think this is about compensation., this is about honesty.
If you sell a product for a company and you say:
Listen Joe, I tried this new product called Wondermaxx and I think you should try it.
If you don't tell Joe (upfront) that you are a rep for WonderMaxx, you are not being honest or transparent.
If you say:
Hey Joe, I just started a new business repping WonderMaxx and I would like you to try a sample.
That is being honest and transparent. If WonderMaxx (fictional product) is really good, Joe may end up becoming a customer for you and if WomderMaxx is remarkable, Joe might even tell others about you and WonderMaxx.
I really don't see how compensation has anything to do with transparency. You are either transparent or not. What you are transparent about is another subject altogether.
I think NM has to sort itself out really quickly. In my opinion a lot of people are gonna start doing MLM with this convergence between MLM, affiliate marketing, WoM etc. and there is two ways really. Either they adopt the "authentic" way (e.g. your manifesto), or best practice that some people are trying to establish, or they all take over the bad manipulative habits that are out there and in the mean while drag down NM and the ones that do it the authentic way with it really :-(
Posted by: Tom De Nert | June 12, 2006 3:04 PM | Permalink to Comment