One of my favorite real estate-related websites has gone through some changes recently. More and more I’m noticing blog posts with misinformation.
It seems that the company is hiring bloggers who are ignorant about the industry and, although frustrating to read, the information is mostly harmless.
Today, however, that changed.
A new blog post on the site offers a list of ways to “Get More Positive Real Estate Agent Reviews.”
Several of the methods she suggested are frowned upon by the very sites she encourages agents to gather reviews.
One is downright illegal unless certain guidelines are followed – guidelines she fails to mention. Let’s start with that one.
“Provide strong incentives”
“Right next to simplicity, incentives are a great way to encourage positive reviews from clients,” writes the author of this insanely stupid blog post.
Yes, bribing someone to leave you positive real estate agent reviews is “simple,” but, without full disclosure, it’s also a violation of FTC guidelines and has been for a very long time.
In 2009, the folks at the Federal Trade Commission published its update of the “FTC’s Guides Concerning the Use of Endorsements and Testimonials in Advertising.”
Don’t get me wrong – the commission makes it clear that you can offer your testimonial-givers a “gift” in exchange for the testimonial, but you are required to disclose the exchange, “… clearly and conspicuously.”
To comply with FTC guidelines, you must disclose any testimonial given with a “material connection.” These include
- Monetary payments or gift cards
- Business relationship
- Friends
- Family members
- Arms-length business deals
- Chance to win a prize
- Offering free or discounted services
For example, the author of the aforementioned blog post gives examples of incentives agents should offer their clients who agree to leave positive real estate agent reviews. These include:
- Offer to promote your client’s business on social media “… if they leave a review …”
- Donate money to “… a charity of a client’s choosing.
- Personalized gifts, such as anything from a “… a $5 Starbucks gift card to succulent plants for your clients [sic] new home.”
Let’s ignore how absolutely impersonal a gift card from Starbucks is and remember that each of these enticements must be disclosed very close to wherever you post the testimonial. Which then, in many readers’ estimation, decreases the veracity of those positive real estate agent reviews.
And the charitable contribution suggestions?
The FTC guidelines state that if “… readers of the reviews would evaluate them differently knowing that they were motivated in part by charitable donations, there should be a disclosure … that donations are made to charity in exchange for reviews.”
Placement of the disclosure also matters to the folks at the FTC
“A disclosure should be placed where it easily catches consumers’ attention and is difficult to miss … A disclosure is more likely to be seen if it’s very close to, or part of, the endorsement to which it relates.”
“Advertisers [that’s you] are subject to liability for … failing to disclose material connections between themselves and their endorsers”
“Outright ask for reviews”
When I bought my home, not only did my mortgage guy offer me a gift card in exchange for a Yelp review, he repeatedly emailed me about it, begging for my help.
I finally called him and let him know that what he is doing could get him into trouble. He had no idea.
The folks at Yelp.com make it very clear where they stand on the issue of testimonial solicitation:
Businesses should not ask for or solicit reviews on Yelp, as it leads to deceptively biased content. This includes asking friends, family, or customers to write reviews; offering incentives or freebies in exchange for reviews; or working with companies that send review solicitation emails.
Violate this policy and the penalty is that your business will end up lower in Yelp’s search results – you know, “where the dead bodies are buried.”
Google, by the way, has a similar policy.
Get tips on how to use real estate testimonials here. And, before taking business advice from a blog post, even if it’s posted on one of the industry’s most respected and authoritative websites, do additional research. You owe it to your real estate business.