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Content Tagged with Product + PayPerPost

SocialSpark: Candy Colored Shilling

ssz.jpgIZEA (formerly PayPerPost) has soft launched their new social network for “posties” Social Spark.

Social Spark brings the PayPerPost scheme into a candy colored social network. There’s little need to describe all the features as there’s nothing really innovative: think MySpace or Facebook but in bright colors. The key difference is the focus on shilling; center stage is offers for paid posting, including most popular offers and most recent. Each offer includes which members of PayPerPost/ SocialSpark recently visited it and posties can leave props for each offer.

One thing that did surprise me is that SocialSpark is also offering “sponsorship opportunities.” These would appear to be as they suggest, simple place a box on your site and get paid sponsorships that would be entirely legitimate and without moral qualms to most people.

The key difference to PayPerPost before it is that offers taken up in SocialSpark must include link=nofollow links, start with a disclosure, and should be neutral in tone: still shilling, but less evil.

The service is currently in closed alpha testing and running behind schedule (it was originally scheduled for a January launch) so perhaps this explains the complete lack of offers available on the site. Most of the paid opportunities come from IZEA itself and not third party advertisers.

SocialSpark isn’t my thing (nor Michael’s), but others may disagree. Screen shots as follows:

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PayPerPost Suspends Zookoda, Deadpool Looking Likely

IZEA (PayPerPost) have suspended Zookoda, the blog to email service they acquired in April.

According to CEO Ted Murphy, the service has been suspended due to “elevated levels of abuse on Zookoda.com” and goes on to explain that the service is being used by spammers. For those that think that PayPerPost pollutes the blogosphere with spam content, the following from Murphy is rich with irony:

We hate spam. Honestly, I don’t think I’ve ever met anyone that really enjoys spam. Some people hate spam even more than we hate spam and those people complained to our network hosting service. Our network hosting service REALLY hate spam….We’re not spammers, we don’t support spammers and we do support everybody’s freedom of choice when it comes to opting in and out email lists.

Murphy suggests that the service will return in January, but we’re putting it on deadpool watch; Zookoda has been failing for months. Most Searched reports that the service started deteriorating when IZEA took over and had gotten to the stage where it simply stopped sending out email distributions in early December. Erno H on LinkedIn reports similar problems. An email distribution service that doesn’t provide email distribution is a business with nothing going for it.

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PayPerPost Users Freaking Out Over Google PageRank Nuke

It’s been less than two weeks since Google penalized PayPerPost bloggers in the most devastating way possible - by resetting all of their PageRanks to zero and effectively removing them from the Internet.

PayPerpost, now called IZEA, is in the process of launching RealRank, an alternative way to rank blogs. But their advertisers are still looking for blogs with an actual PageRank to write about them (this helps with the SEO effort). The result? Freaked out PPP shills who are going to have to find a real job.

Bloggers are expressing their angst on forum thread. Among the more pathetic messages:

Oh. My. God. Oh my god! I can’t believe this is happening. I NEED to earn money with my blogs, I’m going to have to take every single opp I qualify for every day in order to keep up with expenses.

and this, from someone lamenting a negative comment on their blog (the second paragraph is a winner):

I’m trying to develop a thicker skin, I really am. But this is my livelihood, you know? This is important to me. When I started with PPP, I never thought I would still be doing it seven months later, or that I would care about it so much.

And since when is independence and paid blogging mutually exclusive? There is choice involved.

So much for the claims by PayPerPost that their bloggers only write about products they actually believe in. PayPerPost isn’t dead, but a big chunk of their advertisers are clearly bailing now that the SEO value of paid posts is gone. That’s bad news for the shill blogs that rely on PPP to pay the bills, but good for the blogosphere in general.

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Should IZEA Advertisements Be Accepted On TechCrunch? (Updated)

Update: Ok, the poll is now closed. It was close, but the “Nos” have it with 55% of the 3,437 votes cast. No IZEA ads on TechCrunch.

In 2006 PayPerPost CEO Ted Murphy emailed to ask if we’d take their ads on TechCrunch. We said no and that was the end of it. Yesterday I heard from Ted again on the subject of advertising. His company, which has been renamed IZEA, wants to advertise their new RealRank service on TechCrunch.

For anyone unfamiliar with PayPerPost/IZEA and our position on them, it comes down to this: We think the core product is deeply flawed and we’ve said so many, many times. Over time the company has made policy changes that have mitigated some of the biggest issues we and others have with them. For example, they now require disclosure of paid posts, although we take issue with some of the language and the placement of the disclosure.

They are the blogging world’s pariah and are fairly routinely trashed for, as I put it, polluting the blogosphere. For more on our posts on them, see their Crunchbase profile. Here’s our first post on PayPerPost, which is representative of most of our coverage. If you have a spare couple of hours (and you’re tired of watching my sweet dancing moves), you can read all of our coverage of the company here.

Anyway, the company now has other products which we have no particular issue with (example), and RealRank, a new way to rank participating blogs since Google has basically kicked them out of the Internet, is one of them.

We’ve asked Ted if he minds us asking our readers what they think about taking advertising from IZEA on TechCrunch, and he’s agreed. So the question is, do we accept advertising from IZEA for RealRank? The poll is below. If you say it’s a bad idea, we won’t accept it (and Ted says he wouldn’t want to do it anyway since it wouldn’t be received well). If you say yes, we’ll take it.

Two quick additional points. First, yes I know that simply writing this post is a way of promoting PayPerPost. But we’re not linking to them here, and I’m pretty sure Ted isn’t super pleased with all the links to the negative posts we’ve written. Second, it should go without saying that even if we accept their advertising, it isn’t going to affect our editorial coverage of the company. In fact, I may go more negative just to prove we’re neutral, if that makes sense.

What’s your opinion? The poll will remain open for around 24 hours, and we’ll update with the final vote. If you’re wondering how I’m voting on this - well, the very first vote is a “no.” :-/

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PayPerPost Bloggers Get Slammed By Google

ppp.jpgIf participating in PayPerPost wasn’t questionable enough morally before, today it’s now a poisoned chalice as Google has commenced punishing PayPerPost bloggers by completely removing their page rank.

IZEA (the new holding company for PayPerPost) CEO Ted Murphy is not surprisingly calling foul on the move, claiming that it’s part of some sort of censorship conspiracy by Google. Better still Murphy claims that it’s part of Google’s attempts to deny competition because PayPerPost is a “a very attractive alternative” to Adsense.

Murphy goes on to claim that TechCrunch should be punished because our occasional posts thanking sponsors (like this one) is nothing different to what PayPerPost bloggers do.

WTF?

TechCrunch, like many blogs occasionally puts up a post (usually monthly) highlighting our great sponsors, but lets look at one of these posts. They nearly always include the words “TechCrunch Sponsors” in the post title, and are very clear that its TechCrunch thanking our sponsors (”Thanks TechCrunch Sponsors”). There is zero editorial on the benefits for or against the sponsors such as PayPerPost, and it’s clear what the post is about, unlike your typical PayPerPost blog post. We also don’t take money for writing editorial content; TechCrunch publishes posts for and against without favor, where as your typical PayPerPost blog distorts the line between truth and paid advertorial.

Unlike Michael I’ve never been as strong in my dislike of PayPerPost, and although I’ve never used the service myself (I did sign up for an account when they opened so I could review the service) I’m all for exploring different ways for the little guy to make money, even if personally the ethics and morality of PayPerPost has never sat well with me. Yet if PayPerPost ever wanted friends, wild conspiracy centered posts such as this one just say “mad” to me. This looks and smells like a company that is not in a good way, a company that is lashing out as its business model starts to fail around it. I’m predicting Deadpool within 12 months; I can’t see a lot of bloggers being happy with losing Pagerank so we should see an exodus of bloggers out of PayPerPost (particularly ones with traffic) over the next few months. This will leave PayPerPost with inventory deficiencies that will result in diminished revenues making the PayPerPost business model unsustainable going forward.

thanks to Trace for the tip

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PayPerPost’s Latest Gimmick - SocialSpark

PayPerpost, which has renamed it’s parent company IZEA, says they’ll be launching a new social network in January 2008 called SocialSpark.

Bloggers and advertisers (the company says they have over 85,000 bloggers and 11,000 advertisers) will create profiles. Users visiting the site will then “browse the public profiles of advertisers and bloggers along with their associated sponsorship and blog related data.”

”It’s the first social network that is designed from the ground up to be advertiser-centric, while preserving the free, managed flow of user information common within other networks” said CEO Ted Murphy.

The translation, as far as I can tell, is that SocialSpark is a place for advertisers to interact with bloggers who are willing to take pay per post type advertising and run with it. Get to know them, see how big their audience is, whatever. There’s absolutely nothing distasteful about it as an idea. But to the extent it furthers the pollution of the blogosphere by encouraging more paid shilling, it makes us all worse off.

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PayPerPost Launches Random New Service. They’re Up To Something, I’m Sure.

We heard about a new service from PayPerPost today, and while it’s a little boring, there is nothing about it that I can take particular issue with at first blush (we often find things to criticize with PayPerPost - our past posts are here).

Like the popular site TinyURL, URLbrief lets people exchange a long, difficult to communicate URL for a short one. They’ve added a couple of bells and whistles - The URL creator can link to multiple destination URLs and visitors are taken to one of the links randomly when they click. Also, users can see stats on how many clicks the link is getting and browser data on the people clicking.

The service seems completely unrelated to the main business of PayPerPost, which pays bloggers to write posts about advertisers.

But…and I’m thinking out loud here: Those posts always include links back to the advertiser, so perhaps they will use URLbrief to direct that traffic. This seems counter intuitive, since advertisers want the links to go directly to them. But rumor has it that Google has been trying to find ways to penalize PPP blogger links. Perhaps this is a way to minimize any collateral search engine damage from direct links. The stats feature of URLbrief also provides good, verifiable data back to PPP as to how many people click the links, which may help them monetize advertisers more effectively.

Who knows. No conspiracy theory is too outlandish when it comes to this company. All I know is, they’re up to something, I’m sure. There are way too many services out there just like this, and there is absolutely no revenue model around this service. Their blog post on the new product is here.

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PayPerPost: Wasting Investor Money While Offending Native Americans

Ah, PayPerPost. The controversial Florida-based startup that is leading the effort to tarnish the blogosphere makes another PR blunder. And this one’s a whopper.

The company has been chronicling their startup days on a video blog called RockStartup. There have been some embarrassments before with the video blog - such as when a viewer noticed that the company had purchased $700 chairs for employees with investor capital and then yelled at a painter for standing on one (CEO Ted Murphy, pictured above, later said the chairs were purchased used).

But the most recent episode is where the company really takes the cake. All employees of the company were taken on an all-expenses-paid trip to Club Med, where as far as I can tell they spent their time getting drunk and dressing up as Native Americans, complete with lots of red face and body paint (something many Native Americans find both racist and offensive, and which has been equated to Blackface). The company also hired something called a “Creative Thinking Coach” to guide them through the whole experience.

The only question I have is…Did Draper Fisher Jurvetson, the main VC behind PayPerPost, really greenlight this debacle?

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PayPerPost Raises $7 million More

Controversial pay-per-post startup PayPerPost has raised $7 million in a second round of financing, bringing their total raised capital to just over $10 million. Like their previous round from last October the financing was led by Draper Fisher Jurvetson, with participation from Inflexion Partners and Village Ventures. New investor DFJ Gotham, a fund affiliated with Draper Fisher Jurvetson, also participated.

It is generally a bad sign when a company is not able to bring in a new investor for a financing. The company and existing investors generally like to do so because it brings in fresh connections and ensures that a new third party is involved in valuing the round. When a company does a second round with the same investors, it can be (but isn’t always) a sign that the company is in trouble. In Pay Per Post’s case, the simplest explanation would be that most VCs want to keep their hands clean. Getting involved with PayPerPost could hurt their reputation and exclude them from other deals.

Listen to our podcast interview with founder Ted Murphy and investor Josh Stein here. The company’s profile is here.

Update:
An email from Josh Stein at DFJ which points out an inaccuracy above and provides a believable reason for the makeup of the round:

Hi Mike -

Saw your post just now on the PPP Series B. We can obviously agree to disagree on the merits of Payperpost’s model but I thought I should correct you on one factual point: the Series A was not led by DFJ – it was led by Inflexion Partners, who introduced us to the company and brought us into the deal. When I first saw the Series A, $2m of the round had already been spoken for, so at the time I was only able to invest $1m and did not take a board seat due to the small size of the investment.

This is an important point as it leads into the genesis of the Series B. Having worked with the company closely over the past months and having been very impressed with the progress, I made a pre-emptive offer to the company to lead their next round, allowing us to increase our ownership % and enabling me to join the board. Put another way, I liked the company so much that I’d prefer to own more for my fund vs. bringing in an outside investor.

I only bring this up as a personal fyi (feel free to mention on TC or not).

As always, count me as a big TC fan. Keep up the great work.

Josh

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How Much Is Your Soul Worth? PayPerPost Now Lets Bloggers Set The Price

PayPerPost, the controversial blogging service that lets advertisers purchase commentary on blogs, has released a new product called PayPerPost Direct. The new product is a widget that bloggers can add to their blogs that announces their willingness to sell blog posts.

Previously, bloggers perused listings on the PayPerPost website, looking for opportunities to make a few extra dollars. Now, bloggers can set their own minimum price when creating a widget, and let advertisers come to them directly.

This feature subtly shifts the way the company approaches the market. The current system has advertisers paying a set fee per post regardless of the differences in blog size or authority. The result was a low average fee of a $5 or so, which didn’t attract the larger blogs. Now that bloggers can set their own price and engage with advertisers one-on-one, we may see a few of the larger ones begin to use the service. Competitor ReviewMe has a similar approach that pays large blogs more, although the price is based on an algorithm.

PayPerPost keeps 10% of fees generated through the Direct product. Their standard fee on their normal product is a 35% cut.

We’ll wait and see if any of the large blogs adopt this anytime soon. PayPerPost is still deeply flawed - it allows advertisers to demand positive writeups, and they do not require bloggers to disclose within the post itself that it is sponsored text.

Look for a press release later this week. An overview video is available here.

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PayPerPost Acquires Zookoda

Controversial startup PayPerPost will announce the acquisition of Zookoda, an Australian blog-to-email service, tomorrow.

We wrote about Zookoda last year, and the company put the product up for sale last September. There were reportedly a number of offers for the service when it was originally put up for sale, but the asking price of US$500,000 was too rich to close a deal. Now, nearly seven months later, PayPerPost has stepped in to acquire the company. PayPerPost is not disclosing what they paid for Zookoda, although CEO Ted Murphy did tell me it was a cash deal.

PayPerPost previously announced the acquisition of Performancing only to back out of the deal a week later. Murphy assured me that the Zookoda acquisition won’t suffer the same fate.

PayPerPost says that Zookoda has 10,000 blog customers sending emails to 2.3 million people. Like the Performancing deal, PPP will want to market their core service to those 10,000 bloggers. Murphy tells me that they are also looking for new distribution channels for their content, and email is a natural fit. PPP bloggers will probably soon be seeing pitches to join the Zookoda service, perhaps with the promise of higher payouts when they post.

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New Competition For PayPerPost (humor) (I think)

New service BegForPost takes on the ethically questionable PayPerPost service that allows advertisers to pay bloggers to write about their products.

BegForPost promises none of the ethical hassles of PayPerPost. There’s no payment, just begging for coverage:

You’ve worked for months building a startup on a boostrap budget and the launch is near. How will you get an initial influx of traffic to propel your product/service into viral bliss? Don’t pay off bloggers to promote your startup, beg! Getting started is quick and easy. Fill out the form below, sit back, and wait for Internet stardom. You’re almost there!

* Completely free
* No chicken hats
* No conflicts of interest
* No annoying reality show
* No direct deployments to production
* No premature acquisition announcements

The first “begger” is Sparkmeter a “tool to help cut through the ‘08 election news.” They requesting a review on TechCrunch. Nice.

Our previous PayPerPost coverage is here. I expect a cease & desist letter from PPP to BFP to be arriving momentarily.

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Amateur Hour At PayPerPost

It’s not often that a company announces the acquisition of another company and then subsequently walks away from the deal, but PayPerPost isn’t a typical kind of company.

In a post on the PayPerPost blog today, the company said “We…dug into the Metrics platform and regretfully found that it wasn’t what we were looking for right now.” That came just a week after the official announcement of the acquisition.

Generally speaking, responsible companies “dig into” the acquisition target before they announce a deal.

Whatever happened, this isn’t pretty. After the deal was announced, Performancing moved their non-acquired assets to a new domain name and re-launched that service. They certainly stopped talking to other potential acquirors, given that the deal was officially announced. In merger-land, this is what’s known as “being left at the altar” because everyone down the road who you talk to will want to know why the previous deal exploded.

Performancing should have had a more nailed down acquisition agreement, so they aren’t entirely blameless. But PayPerPost is becoming an increasingly ridiculous startup, and a black eye for investor Draper Fisher Jurvetson.

Our previous coverage of PayPerPost is here.

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PayPerPost In The News Again

PayPerPost, the controversial startup that pays bloggers to write about advertisers’ products, will be in the news again tomorrow. They will be announcing the acquisition of blogging tools and services company Performancing (see our earlier coverage of Performancing).

The main purpose of the acquisition appears to be for PayPerPost to get access to the 28,000 Performancing users, most of whom are bloggers and potential customers of PayPerPost. The popular Performancing Firefox blog editing plugin is not being acquired, and will be spun off into a new brand.

Our previous coverage of PayPerPost is here.

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PayPerPost Does Something Right

PayPerPost, a marketplace for advertisers to pay bloggers to write about their products, will make a significant policy change on Monday: Bloggers will now be required to disclose that they are being paid for their posts. This looks to be at least partially due to recent moves by the FTC to force word-of-mouth advertisers to disclose any financial incentives to promote products: “FTC” is mentioned five times in the press release that will be issued on Monday (a copy of the press release is below).

This isn’t a perfect fix for PayPerPost - advertisers can still require a positive post about their products, and the disclosure does not have to be within the post itself. The blogger can choose to “prominently” display an accurate disclosure policy on the site in lieu of disclosure within the post itself, although the disclosure policy being recommended by PayPerPost states that paid posts is the same as any advertising on a site. Still, it is a big move in the right direction.

In many ways this move reminds me of Plaxo’s decision to stop spamming non-customers after a barrage of criticism. In this case, the move seems to stem more from the threat of government regulation. Regardless, we applaud the change.

Our previous posts on PayPerPost are here, and a podcast interview with the founder and one of his venture capitalists is here. Also see our coverage of competitor ReviewMe.

The press release is below.

PayPerPost Requires Disclosure by Marketplace Participants

Company Follows DisclosurePolicy.org Launch with Transparency Mandate

ORLANDO, FL – (DATE) – PayPerPost, the leading marketplace connecting marketers with bloggers, videographers, photographers, podcasters and social networks, announced the second phase of its full disclosure model, whereby participating Consumer Content Creators are required to disclose their sponsored status. The new Terms of Service, effective today, will bring greater transparency to the growing Consumer Generated Advertising industry.
Since creating the concept of sponsored posting, PayPerPost has allowed and encouraged transparency, enabling marketers and bloggers to disclose word-of-mouth (WOM) or buzz marketing relationships. The company provides bloggers with tools to empower disclosure and has popularized the concept of adopting a Disclosure Policy for all bloggers through http://www.DisclosurePolicy.org. Consistent with WOM industry guidelines, PayPerPost also prohibits marketers who use the PayPerPost marketplace from requesting no disclosure. Today’s announcement builds upon that foundation.
“The mission of PayPerPost has always been to be the top marketplace connecting bloggers and marketers,” said Ted Murphy, chief executive officer of PayPerPost. “We have always believed that the marketplace will naturally evolve based upon needs of the marketers and bloggers participating in the market. Proper transparency for WOM marketing has been an ongoing balance for our members and an issue with little legal precedent. Although the FTC was petitioned and recently declined any formal action against buzz marketing practices (e.g. Proctor & Gamble Tremor, BzzAgents), we believe the marketers and bloggers in our marketplace will benefit from today’s Terms of Service updates. We will undoubtedly lose some marketers and bloggers in the process, however we believe this measure serves our marketplace participants long term.”
As part of this announcement, we invite a competing and even larger part of the WOM marketing industry, affiliate marketers, to join PayPerPost in mandating full disclosure. Mary Engle, FTC director of advertising practices, recently stated “the FTC examines a number of criteria in deciding whether to bring a case against a marketer but usually looks more closely at actions that lead consumers to make purchase decisions. Some word-of-mouth marketing is focused on getting consumers to visit websites rather than to make immediate purchases.” Given that affiliate programs, regardless of FTC disclosure adherence, specifically reward bloggers for driving immediate purchases, affiliate marketers are encouraged to mandate disclosure, or embrace WOM marketplaces like PayPerPost that deliver the highest online marketing ROI with less risk of future FTC scrutiny.
PayPerPost’s new Terms of Service require participating content creators to fully disclose site wide with a prominent Disclosure Policy or on a per post basis. To cover the increased blogger and marketplace costs of the company’s new policy, PayPerPost is raising the minimum price per post by one dollar to five dollars per post. The company’s marketplace remains the lowest cost, highest value provider of online WOM or buzz marketing. “PayPerPost believes that its marketing partners will support this new pricing structure. Although our operating costs will increase slightly due to today’s move, the net result is a stronger communications environment for all. We encourage online WOM networks of all kinds, whether blog-based, affiliate or other models, to follow suit.”

About PayPerPost:
PayPerPost is the leading marketplace for Consumer Generated Advertising. The PayPerPost platform connects advertisers and Consumer Content Creators to deliver compelling marketing messages. The marketplace is fueled by the self expression of bloggers, videographers, photographers, podcasters and participants in social networks. PayPerPost is easier to use than paid-search or display advertising and provides more powerful features. The company is venture funded by Inflexion Partners, Village Ventures and Draper Fisher Jurvetson. Advertisers, Consumer Content Creators and partners are encouraged to join the revolution at www.PayPerPost.com.

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FTC May Regulate PayPerPost

The Washington Post is reporting that the Federal Trade Commission issued a staff opinion yesterday saying that companies engaging in word-of-mouth marketing, in which people are compensated to promote products to their peers, must disclose those relationships.

We are working to obtain the opinion to see how this might affect the PayPerPost business. This might force their hand and require their bloggers to disclose when they promote products for a fee.

Our previous PPP coverage is here.

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PayPerPost Chronicles Their Amorality

Florida based PayPerPost just launched a new site called RockStartup, which chronicles the birth (and I hope, ultimate failure) of their ethically-challenged startup.

RockStartup seems to be heavily influenced by the movie Startup.com, which tracked Kaleil Tuzman and his team (and multiple girlfriends) through a web 1.0 startup. Some of the scenes in the first two episodes of RockStartup are near duplicates of scenes from Startup.com. Of course, RockStartup is being consumed real time, whereas Startup.com wasn’t released until after the company folded.

I can’t wait for the episode where Ted (the founder) goes to jail. -)

I’m not going to go into the whole payperpost argument again. Not after seeing a naked guy in bed trash me on YouTube. If you want to know my opinion on PPP, see our previous posts and listen to our interview with the founder after their financing.

Update: “PayPerPost are offering bloggers like myself cold hard cash to voice their opinions about a TechCrunch story posted by a dude called Mike.” Incredible.

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ReviewMe Launches: A Better PayPerPost

ReviewMe, which is a PayPerPost-like service that pays bloggers to write about advertisers’ products, just launched moments ago. The company is backed by TechCrunch-sponsor Text-Link-Ads, which was recently acquired.

ReviewMe has a somewhat different model that PayPerPost. Where advertisers on PayPerPost set a single fee that is paid to all bloggers regardless of their size, ReviewMe uses an algorithm based on Alexa, Technorati and other statistics to determine the importance of a blog and charges a different fee for each blog based on the calculation. Blogger payments range from $30 - $1,000 per post.

Also, Bloggers must disclose that the review is a paid advertisement. They can do this in anyway they choose, ie “The following is a paid review:” “Paid Advertisement:” etc. This is another improvement over PayPerPost, which is heavily criticized because it does not require disclosure.

Finally, advertisers can purchase posts, but they cannot require that a post is positive. The blogger can choose to write their honest opinion without fear of not being paid. The only requirement is that the review must be a minimum of 200 words.

In an email exchange, a company spokesperson said “We are planning on burying PayPerPost.” While we do not endorse this business model, we do note that ReviewMe has removed the most egregious aspects of the PayPerPost business model: no disclosure requirement, and a requirement to write a positive post.

ReviewMe is eating their own dog food by giving away $25,000 today to pay bloggers to write about the service.

In related news, see Steve Rubel on a new startup called LoudLaunch. As I said before, this pay-to-shill business model is spreading like a virus.

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PayPerPost Is Now Officially Absurd

Many commenters in previous TechCrunch posts on PayPerPost compared their business model to payola in the music industry. At PayPerPost, bloggers are offered cash to write about products. Disclosure is optional, and often the bloggers are required to only express positive comments. The company is now well funded, and a number of competitors have launched. This “virus” seems here to stay.

Don’t look for PayPerPost to require blogger disclosure anytime soon. Instead, they are creating a distraction, designed to keep the buzz about PayPerPost going strong, as well as to move people’s attention away from the core issue of blogger disclosure of product shilling.

In a move reminiscent of big tobacco funding tobacco research, PayPerPost is announcing a new initiative on Monday called DisclosurePolicy, which “provides policy creation tools, best practices and forums for discussing the delicate balance between content creator freedoms and audience transparency expectations.”

DisclosurePolicy creates a disclosure policy for bloggers to post on their blogs, based on their answers to a few questions. They will also pay every blogger who posts a PayPerPost disclosure policy on their blog $10.

While that sounds like a fine idea, PayPerPost bloggers should also be disclosing the fact that they are being paid for their post prominently within the post, not on some separate page in their blog. Also PayPerPost subtly works with the language they use, particularly around the definition of “compensation” to suggest that all blogs have bias (and therefore PayPerPost isn’t really that bad). Here are the three choices - bloggers must choose one:

This blog does not accept any form of advertising, sponsorship, or paid insertions. We write for our own purposes. However, we may be influenced by our background, occupation, religion, political affiliation or experience.

This blog does not accept any form of cash advertising, sponsorship, or paid topic insertions. However, we will and do accept and keep free products, services, travel, event tickets, and other forms of compensation from companies and organizations.

This blog accepts forms of cash advertising, sponsorship, paid insertions or other forms of compensation.

If you are a PayPerPost blogger, or the New York Times, or anything in between, you must pick the third option. That’s because “taking advertsing” and “paid insertions” are defined as the same thing. And even if you have no form of advertising or other revenue on the site, you have to admit to bias based on “background, occupation, religion, political affiliation or experience.”

Blurring the lines in this way - facilitating the pollution of the blogosphere while creating an illusion of doing something good for the public, is a good business move for PayPerPost. But it is a terrible development for the blogsphere and public trust. I hope that very few bloggers are suckered into going along with this.

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Web2.0: TechCrunch

The PayPerPost Virus Spreads

Two new services that are similar to the controversial PayPerPost have announced their launch in the last few days: ReviewMe and CreamAid. PayPerPost, a marketplace for advertisers to pay bloggers to write about products (with our without disclosure), recently gained additional attention when they announced a $3 million round of venture financing.

The PayPerPost model brings up memories of payola in the music industry, something the FCC and state attorney generals are still trying to eliminate or control. Given the distributed and unlicensed nature of the blogosphere, controlling payoffs to bloggers will be exponentially more difficult.

Our position on these pay-to-shill services is clear: they are a natural result of the growth in size and influence of the blogosphere, but they undermine the credibility of the entire ecosystem and mislead readers.

ReviewMe is backed by Text Link Ads, a long time TechCrunch sponsor. It has not launched yet but was announced earlier today. Like PayPerPost, ReviewMe is a marketplace that allows advertisers to pay bloggers to write about their products. There are some significant differences in the business model, though. Where advertisers on PayPerPost set a single fee that is paid to all bloggers regardless of their size, ReviewMe uses an algorithm based on Alexa, Technorati and other statistics to determine the importance of a blog and charges a different fee for each blog based on the calculation. To their credit, ReviewMe requires bloggers to disclose that they are being paid for the post, and advertisers cannot require a positive post (PayPerPost makes disclosure optional and advertisers can require positive posts).

While we applaud the fact that ReviewMe requires disclosure and prohibits advertisers from requiring a positive post, we still think the very act of paying bloggers to write about a product is a very bad idea. Frankly, we’re not happy that one of our sponsors has launched this type of service, and we’ve notified them that we will not allow promotion of ReviewMe through TechCrunch.

CreamAid launched earlier this week. The service is similar to PayPerPost but requires bloggers to include a Flash widget in the post that links to CreamAid and also shows other blog posts that have discussed the product. There does not seem to be a requirement that bloggers write positively about a product, but there are few details on the site. Part of the goal of CreamAid seems to be to build a social network around paid posts using this widget.

My hope is that PayPerPost quickly requires disclosure by bloggers and eliminates the ability for advertisers to require positive reviews. It’s clear that simply stating we don’t like these services isn’t going to make them go away. VCs are now involved and PayPerPost has a large number of bloggers on their payroll that are willing to attack anyone that says it’s a bad idea. Given the very low likelihood of government involvement similar to the effort to eliminate payola in the radio industry, I’m not really sure what can be done to reverse the trend. In the end, individual bloggers will have to establish and maintain their own credibility.

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Controversial PayPerPost Raises $3 million

We first covered PayPerPost when it launched three months ago.

The service is a marketplace for advertisers to pay bloggers to write about products for a fee. Commenters to our original post were polarized into those violently for and those againt the product. The key area of controversy is the fact that advertisers can mandate that posts be positive on the product, and disclosure of payment is optional for the blogger (screen shot at end of post shows sample available writing opportunities).

The controversy didn’t stop venture capitalists from quickly jumping on board, though.
On Tuesday PayPerPost will announce a $3 million round of financing led by Inflexion Partners and with participation from Villiage Ventures and Draper Fi