Hey guess what? I have something to share with you that will shock you.

Wait for it…

Osama Bin Laden was captured and killed by US forces.

OK, I know I’m being silly. Is there any way ANYONE who doesn’t live under a rock doesn’t know this?

But here’s the thing. It seems that many direct sellers have COMPLETELY lost their heads about this. I am shaking my head in shock watching the polarizing political posts go by from both ends of the spectrum. Everyone seems to be using this excuse to make their political point.

And every time you do this online, you’re damaging your business.

Why can’t you just say this stuff to your friends in person? Must you make this point on Facebook to people who will be alienated because of your strong political opinion? Have you no control at all when it comes to this stuff?

Hear me: When you make political posts that lean strongly in one direction, there will be people in the other direction who disagree with you strongly. And if your post hits them the wrong way, they may very likely choose to hide or unfriend you. And then all the work you’ve done to build a relationship with that person is GONE. FOR. GOOD. It’s not worth it.

Not to mention the fact that people’s opinion of your company is often colored by what you say online. So even if the people you’re friends with agree with you, someone else who is a customer of someone else in your company may read it and decide that your whole company is wrong. They might stop doing business with someone else in your company, or brand your company as “full of extremists” because you couldn’t keep your opinion to yourself.

This is bigger than you folks. And you need to quit it. You are doing damage to your own business, and to your company.

Your thoughts?

So the big news coming out of the Big Game is of course who won and failed on the commercials. I’ve been watching the Volkswagen Darth Vader commercial for days, and my kids think that it’s by far the best. (Of course, they’re on a Star Wars kick at the moment, so anything with Darth Vader had an unfair advantage, anyway.) See it here:

http://www.youtube.com/watch?v=R55e-uHQna0

And then there are the losers, and in this case the big loser we’re talking about is Groupon. After sharing several causes that people are passionate about, such as the destruction of rainforests and the rights of Tibet, the commercials proceeded to trivialize these causes by somehow equating them to saving money with Groupon.

See the Groupon Tibet commercial here:

http://www.youtube.com/watch?feature=player_embedded&v=ycwmYbK0gIQ

What I find most horrifying about all of this is that Groupon somehow intended that these commercials would foster donations to these causes. Despite the fact that Groupon trivialized these causes so badly in these ads.

Here’s what Groupon had to say on their blog:

The gist of the concept is this: When groups of people act together to do something, it’s usually to help a cause. With Groupon, people act together to help themselves by getting great deals. So what if we did a parody of a celebrity-narrated, PSA-style commercial that you think is about some noble cause (such as “Save the Whales”), but then it’s revealed to actually be a passionate call to action to help yourself (as in “Save the Money”)?

So what you’re saying, Groupon, is that you’re taking causes that would actually help big, important issues, and turning them into narcissism? Way to go.

But wait, there’s more.

And if you’ve saved enough money for yourself and feel like saving something else, you can donate to mission-driven organizations that are doing great work for the causes featured in our PSA parodies. If you guys pony up, Groupon will contribute matching donations of up to $100,000 for three featured charities – Rainforest Action Network, buildOn, and the Tibet Fund — and Groupon credit of up to $100,000 for contributions made to Greenpeace.

So what do you think? Does Groupon redeem itself from these awful commercials because it’s going to donate money? Or would they have been better off donating the money they spent on these ads to the charities themselves? Share in the comments.

I’ve been thinking a lot this week about how brands are being taken down by the collective internet for various perceived offenses.  Yet other brands get away with bad customer service and the like, and it just passes by.  Where is the line that sparks people to action?  Is it a collective experience?  Something offensive?  A leader? The time of day? What is it that calls people to say ENOUGH and actually lead a movement that either destroys a brand, or makes it change its ways?

Is bad customer service a big deal?  Is that enough to get you into trouble?  It could be.  Just ask United Airlines.

Brands that have customer service policies and representatives that do not serve the customer are playing Russian Roulette in this social media enabled world.  One day someone is going to draw that line in the sand.  They will find others who agree with them.  And then the mob mentality takes over, and good luck with being left standing at the end of the day.

I think brands need to be SUPER careful when it comes to this, because you never know when enough will be enough.  Companies need to get their collective houses in order.  It doesn’t matter if you’re big or small.  People are realizing the power they have collectively to effect change on brands, using the power of social media.  What happens when people refine this process?  When they organize?  Are you prepared?

If you’re a brand, don’t let the things that are within your control slide.  You won’t necessarily completely avert disaster, but you have a much better chance if things you COULD have fixed are taken care of.  The internet is too powerful to let these things slide.

What do you need to fix NOW to avert disaster later?

image credit: Dominic Alvez

Yesterday I was reading a post on Jeremiah Owyang‘s Web Strategist blog called “A Chronology of Brands that Got Punk’d by Social Media.”  It’s a riveting read, and if you are responsible for your brand’s social media presence, you must read it to be aware of the worst that could happen (and did to the brands Owyang describes in the post.)

Part of the problem, as Owyang shares, is that brands are not prepared for the type of coordinated social media attacks that organized activists such as Greenpeace and PETA can launch, should they so choose.  The Cooks Source debacle teaches us that the internet can sink your brand even if they AREN’T organized.  Many brands are still trying to figure out the social media tools themselves.  But those folks who could wreak havoc are WAY ahead of you.

Direct selling companies who are still trying to figure this all out have got to get ahead of the curve quickly.  As the list of brands here demonstrates, there WILL be problems, no matter what your company size. Ignorance is not a suitable defense.

Is your brand ready?  If not, I HIGHLY recommend you get yourself to the DSA’s Be Connected Conference next week (December 5-7.)  The best and brightest of those doing social media in the direct sales industry will be there.  Learn from them.  (If you’re coming, let me know.  I’ll make sure you’re connected to the right people.)  And be sure you’re prepared for the crisis.

Last week I wrote an article called Stop Complaining! where I called out salespeople who think it’s OK to complain on the company’s public Facebook Page.  Based on the comments and the way the post was spread around, it obviously resonated with you.  We all get frustrated with this bad behavior.

But what are we doing about it?

Sure, companies and their compliance departments can reach out to people and ask them to direct their concerns more appropriately.  But in all honesty, there’s only so much the company can say.  After all, they’re not in the business of silencing people.  Nor do they want to cause anyone to quit doing business.  So it’s a careful line that companies must walk, and sometimes they’re just stuck with dealing with the criticism, however inappropriate it might be.

So where does that leave the rest of the sales force?  After all, when these complainers get started in public, it can affect YOUR ability to do business too.  There’s a role that consultants, and especially leaders, must play here, too.

1. Training: Leaders in direct selling companies provide training all the time to their downlines.  Are you specifically addressing how people should handle things when they’re not happy?  Be sure that your team knows where it is – and isn’t – appropriate to voice concerns.  Make sure you also emphasize just how public social networks really are.
2. Modeling: Leaders need to make sure they’re demonstrating, through their own actions, how to behave on social networks.  Be sure you’re sticking to the 9 value posts for every 1 business post rule, and when something goes wrong, address it in private.
3. Guiding: When someone on your team does post inappropriately in public, send a private note to that person.  We can’t hold back here if we hope to change things.  Sometimes we get worried that people will get mad at us, but this kind of post can make the entire company look bad and damage everyone’s ability to do business.  Let the complainers know where they can direct their concerns (we’re never trying to silence people!) and remind them how public Facebook is.  You might also let them know what the consequences could be if customers see their post…we don’t always think about that.

But what if it’s someone that’s not on your team and you see something negative?

1. Overwhelm the negative with positive. If you see a negative comment on a thread, counter it with a specific, positive post.  If customers do see the negative post, they’ll also see a counter-point, and get a more balanced view.
2. Reach out. If you feel like you can (and especially if you know them), reach out to that consultant privately with the information about how to let their concerns be heard privately.  Remind them that customers can see what they post on the Facebook Page.  Let them know that you do want their concerns to be heard, but the best way to ensure that their concerns get to the right person is to send them through the right channels.  After all, it’s usually the PR or social media team that’s running the Facebook Page.  That’s probably not the department you’re trying to reach anyway.

And finally, say thank you.  One of the things that really struck me in the comments on Friday were the corporate people who talked about how disheartening it is to be “slapped” in public by negative comments, when all they’ve done is work, sometimes for months, on programs to benefit those very consultants.  It really is just wrong.  I remember when I was running my direct sales company, and consultants would complain after we worked so hard on getting a fabulous program out for consultants.  It was awful.

Remember, folks, these are human beings in your company. It’s not just a nameless, faceless program.  There are people behind every single thing that comes to you.  People may have spent weeks or months creating what they thought was the very best possible thing for you.  Maybe you would have done things differently.  But so what?  People are working hard FOR YOU so that you can do your business.  Show a little appreciation and kindness.  Maybe even send a private note to someone in your company today, letting them know how much you appreciate them.  Focus on what’s RIGHT for a change.

It’s up to all of us to end this bad online behavior.  Your company can’t do it alone.  Don’t be afraid to step up and say something when people complain in public on the company’s social media profiles.  Set the example, be sure people understand the impact of their complaints, and say something when they do it anyway.  It’s time for this to stop.

Your thoughts?  Please share them in the comments!

Recently, I’ve seen a flurry of before and after photos from my direct sales friends, showing how their product has helped with weight loss, wrinkle removal, etc. I also just saw a post from someone on a company Facebook Page asking for a testimonial from other distributors for how their product helped cure a certain disease.  Now some testimonials and photos are produced by the company, and that’s fine.  But some are clearly produced by the distributor (in fact I’ve even seen posts asking for these from customers) and these can get distributors…and their companies…into some serious legal hot water.

So today I want to talk to you about customer testimonials and before/after photos online, and your responsibilities when it comes to them.

If you don’t want to read this whole thing, here’s the main point: If your company hasn’t produced it, DON’T POST IT.

Why?  Because the FDA and FTC are very picky when it comes to publishing testimonials.  In fact, distributors and their companies have collectively been fined millions of dollars for breaking the rules. And posting these things to social media sites counts as “publishing” in the eyes of the FDA and FTC.

And the rules, boiled down, are this:  If you don’t have a scientific study that says that your results are typical for everyone in the population of a specific demographic, you can’t print it.  In plain English, this means that if you don’t have a scientific study that says that your product will cure obesity in 40 year old women across the board, you can’t say it helped ANY 40 something woman with obesity. Bottom line: No study, no post.  If your company DOES have that study, they have a testimonial or photos you can use.  If they haven’t given you these, it means they don’t have a study (these cost millions of dollars) and you are NOT ALLOWED to post them.

The FDA says that you can’t claim that your products can diagnose, treat, cure, or prevent any disease, unless your product is classified as a drug (yours most likely isn’t).  This includes things like obesity, wrinkles, and any disease you can name.  I’ve written at length about this topic here: http://www.jenfongspeaks.com/youll-pay-millions-in-fines-if-you-violate-these-rules/

So what should you avoid saying?  Things like:

• Product X helped me lose 20 pounds!
• You should see these amazing photos!  My product removed all the red spots from my customer’s face.
• Product X removes wrinkles!  Try it and look 10 years younger!
• If you’ve got (insert disease), try Product X.  It’s helped many of my customers get rid of these symptoms once and for all!
• Product X grows hair!  Check out these amazing photos of my client after only 5 weeks.

What else would you add?

The long and short of it is this: You cannot post before and after photos and customer testimonials related to cures/prevention, etc. without science to back it up.  So people, listen up!  I do NOT want you to get in trouble with the law.  Stop posting these things!

Would love to hear your thoughts on this.  Have you seen this type of post?  What have you seen?  Share in the comments below!

image credit: Katie Tegtmeyer

Ever get that comment on your blog or social networking profile that made your stomach feel a little funny?  Maybe it was critical of something you said.  Maybe it bashed another commenter on your wall.  Maybe it was completely irrelevant to the discussion at hand.  What do you do about that?

We talk a lot in social media circles about the need for authenticity and transparency.  Deleting what other people have said is considered a last resort, and several major brands have been slammed quite publicly for deleting critical comments on their online presences.  It’s a tough quandary.  After all, it’s important for us to represent our brand in a positive way.  But at the same time, if the online conversation isn’t real, and we don’t take the opportunity to fix things that are broken instead of trying to hide them, people will call us out on them.

So how does that impact you?  How do you decide which comments to let stand, and which to remove on your own presences?  Here are few thoughts:

1. If the comment is critical of the person or brand being discussed, yet respectful, let it stand, and simply provide a thoughtful response.  That response could correct a misconception, apologize for a problem, or assure the person that you’re looking into it.
2. If the post criticizes another commenter, I delete it, typically.  Disagreement on issues is fine.  But when it comes to pointing fingers at others, or bullying, I don’t think that’s appropriate.  I want my presences to be a safe place for everyone to discuss issues without fear of personal attacks.
3. If the comment has curse words, that’s an automatic deletion.  Same goes for mean-spirited posts that are simply designed to cause trouble.
4. If the post is self-promoting, and has nothing to do with the topic at hand, feel free to delete it.  It brings no value to the discussion.  (Sometimes, if something is borderline, and it’s a place I can edit the comment, I will simply remove or disable a link that is included.)

It’s important to remember that you never want to try to hide things in social media.  It will almost always come back to bite you.  Better to allow the conversation to happen in a place where you can provide your perspective.  But at the same time, it IS your presence, and you have the right to set the ground rules about what is appropriate…thus my rules about bullying, cursing, etc.

Some organizations have even gone so far as to create a posted comments policy.  Your company’s Facebook Page might have one.  It states quite simply what is allowed, and what isn’t.  This creates an environment that is comfortable for all participants.

So what are your thoughts on this issue?  How do you handle uncomfortable comments and posts?  Would love to read your thoughts in the comments below.

Because I believe good service should be rewarded, I’m writing this post.

Yesterday I was sitting in Newark Airport.  Because I fly so much, and there is no free wi-fi in Newark Airport (my home airport), I fork over the cash monthly for Boingo Wi-Fi service.  (It irritates me that Newark doesn’t have free wi-fi when other airports can manage it, but that’s another post for another day.)  I can’t afford NOT to be productive for the amount of time I spend in Newark Airport.

So anyway, I’m sitting there working, and my Boingo service keeps cutting out.  Frustrating.  So I tweet.

I was not expecting a response.  I was simply blowing off steam.  So it completely surprised me when I received the following tweets, shortly after mine.

Yay for companies that pay attention and try to help.  It didn’t actually solve my problem.  But they said sorry, and it did make me feel better.  And sometimes that’s all you need for a momentary annoyance.

So kudos to Boingo.  You almost made me happy about paying for wi-fi in Newark Airport.  OK maybe not that happy.  But you did good.  Thanks.

This is a great example of the power of social media monitoring.  Simply by saying “I hear you,” you can sometimes turn a frustrated customer into a happy one.  Even if you can’t fix it.  At least you can try, and let the customer know you’re trying.  Sometimes that’s all that’s needed.  Make sure you’re monitoring your company and product names.  You can do it for free with tools like SocialMention.com and Google Alerts.  Or you can do it even better with paid monitoring platforms.  But make sure you do it.  It can make all the difference in customer satisfaction.

Your thoughts?

I have written on this topic before, but apparently it’s time for a refresher.

Nothing makes me shake my head more than consultants who don’t know how to behave on their company’s Facebook Page.  Here your company has gone to the effort of providing you with a resource on Facebook that can help you build your business, and what do some consultants do?  They complain about the company on that page!  Disagree with facts and status updates the company posts!  Talk about shipping issues or side effects they think they’ve discovered or their opinion on the company’s decision to discontinue their favorite product…in general create negativity about the company, right where customers and prospects have been invited to learn more about the brand!

I simply can’t understand it.  Don’t you WANT to make money? Don’t you WANT your company to stay in business?  Don’t you realize that every complaint on a Facebook Page is fully indexed by Google and lasts FOREVER?

People, no company is perfect.  I get that.  But there is a time and a place to let your company know what you think. And publicly bashing the company you represent on Facebook is, frankly, stupid.  There is NOTHING to be gained and everything to lose by complaining there.

Quit it!

So here’s my list of things you should never post to the company Facebook Page:

1. Complaints about or issues with products.
2. Complaints about the compensation plan.
3. Complaints about business practices of the company.
4. Complaints when your company decides to discontinue an item you like.
5. Side effects of your health and wellness products.
6. Product claims or testimonials that can’t be scientifically proven through a study.
7. Income claims that can’t be backed up with at least 12 months of data, and that your company has approved.
8. Your personal web address or contact information (the company page is not the place for self-promotion)
9. Strong political and religious opinions.
10. Any other complaints or negativity that haven’t been addressed in numbers 1-9 above.

What would you add to this list?

Who do you know that needs this message?  Share this post!

OK everyone, this is a really important post, so put down whatever you’re doing and listen up.  I’m giving you my *serious eyes.*  I mean it, pay attention.

If you are in a direct sales or network marketing company, your policies and procedures forbid product claims.  Don’t believe me? Go read ‘em.  Trust me, it’s in there.  Especially if you sell any type of product that is supposed to go in or on the body, this is HUGE for you.  Companies AND their distributors (yes, you read that right…distributors too) have been fined MILLIONS of dollars for making improper product claims. This applies to all kinds of things: what you post in a blog, customer testimonials, statements on your Facebook page…all of it.

Spencer Reese

And the thing about social media is that the alphabet soup of all those regulatory bodies (FTC, FDA, etc) can easily find out when you’re making those claims.  Even if you are absolutely convinced that your product cured your cancer, you can’t say it.  Why not?  Well, I decided to ask my friend and colleague Spencer Reese, direct sales lawyer extraordinaire (if you’re a direct sales company in need of a law firm, check out Grimes and Reese at http://www.mlmlaw.com).

Here’s what I learned.

First, let’s talk about what a product claim actually is.  Essentially, you can’t state that your product can diagnose, treat, cure, or prevent disease, unless your company has a scientific study to back it up. If your company DOES have that study, your product is classified as a drug and has the proper labeling. And those studies cost millions of dollars.

So what can you say?  You CAN say that your product can “help maintain or support a system of the body,” so long as a scientific study has been done to prove it, and the statement has been filed with the Food and Drug Administration (FDA) within 30 days of when the claim is made.  How will you know if that has happened?  If your company has printed it first, or told you that you can say something.  If the statement has NOT been filed with the FDA, then that statement does not get the “safe harbor” protection created for supplements, and your product REQUIRES drug labeling.  And drug approval is a process that requires MILLIONS of dollars.

Let’s put this in terms of what you do daily.  If you make a statement about your product that has not been filed with the FDA, and the FDA finds out, the FDA could require your company to stop selling that product and seize all the stock of that product.  Seriously.  And then your product can’t help anybody.

And we haven’t even started talking about the Federal Trade Commission (FTC) and the Department of Justice, because they can get into the act too.  If the FTC determines that there is no competent or reliable scientific evidence to support your claims (as in, no scientific studies done), then there can be uber fines, and they may also require your company to take all the profits they’ve received from the sale of that product, and give it to the FTC to be used for “consumer redress.”  Don’t think it can happen?  In one case, according to Reese, not only was a company fined millions, but the top distributor was also fined $1 million, and the 2nd distributor was required to pay $500,000 in fines.

So what about customer testimonials?  You may have a client who is absolutely convinced that it was your product that solved his or her problem (be it obesity cure, hair growth, fewer wrinkles, dandruff treatment, removed acne scars, health issues, etc.).

The issue here is that from the consumer standpoint, the consumer doesn’t have enough evidence (according the the FDA and FTC) that your product is what actually cured the problem. Is there evidence that the product was absolutely what cured the problem?  Was the customer doing anything else about the problem at the same time? As a consumer (or distributor for your company) you just don’t have enough information.  Chances are you’ve done other things, too, that also contributed to the cure.  You need science to back up the causal relationships.  You have to go through clinical trials that drug companies go through (which cost millions of dollars) to eliminate all the other possibilities that may have contributed to the cure.  You need scientifically substantiated information.  Anecdotal evidence is not enough.

Your best bet with any testimonials you want to publish (and no matter where you post these testimonials online, it’s considered “published”) from your customers is to run them by your company first.  Your company HAS to have a scientific study to back the testimonial up before you’re allowed to publish it.  If they don’t have one, no matter how sure you are that it’s accurate, you simply cannot use it.  And HOW it’s phrased matters too.  If your product is not classified as a drug, the testimonial has to fall within the “structure/function” area we talked about earlier, which is where you have scientific evidence that your product supports the healthy function of a body system, rather than curing anything.  Your company really needs to review everything in order to confirm that it’s in compliance.

To stay safe, don’t allow your customers to publish testimonials on your sites either (neither your own nor your company’s.)  This includes the company Facebook Page.  If they put them there, and they don’t comply with what you’re allowed to say, take them down.  You can be held liable for everything published to a site designed to promote the company.  Your best bet is to have a policy listed anywhere the public can comment or provide testimonials in public, and then be sure to police it, taking down anything that is not in compliance with the law.

And here’s another layer to this…the FTC in December published new guidelines with regards to product testimonials. (You can read about them here: http://www.ftc.gov/os/2009/10/091005endorsementguidesfnnotice.pdf) You USED to be able to say that results were not typical when presenting a testimonial, if it was true but it was not the average results with your product.  Now, if a testimonial is outside generally typical results, you must also disclose what typical results are as part of the testimonial.  What can be generally expected by the population?  Studies have to be very carefully designed so you can make appropriate disclosures.  So if you don’t have typical weight loss results studies for sedentary women in their 40′s, you can’t publish a testimonial from a sedentary woman in her 40′s that lost vast amounts of weight with your product.  That’s the law.

Direct sellers that need to be most careful with this are those that sell products that are put into or on the body.  Most typically, this includes people that sell health and wellness products, weight loss products, and cosmetics/skin care.

I’m telling you all about this today because with social media, we sometimes think that what we say falls under the same umbrella as things we say in person.  Now I’m not saying that you should ever make unsubstantiated product claims.  But when those claims are PUBLISHED ANYWHERE ONLINE, they can go much further than you think.  There is written proof that you’ve said them.  And it can harm you, your company, and every distributor in your organization.

Don’t be the person that prevents your company from selling an incredible product.  Stick within the realm of what you’re allowed to say, so everyone can enjoy the benefits of your product line.  Everyone will be better off in the long run.

Got it?

Special thanks to Spencer Reese of Grimes & Reese for his help in writing this article.

Spencer Reese graduated from the Washington University School of Law in 1986. He began practicing law in the areas of environmental law and commercial litigation in Boise, Idaho.   In 1992 Spencer joined the legal department of the direct selling company Melaleuca, Inc., and in 1996 he and his partner Kevin Grimes formed the firm Grimes & Reese where his practice is limited to providing legal services to direct selling companies and the dietary supplement and cosmetics industry.

Spencer has assisted hundreds of young and start-up direct sellers navigate their way through the regulatory maze of the FTC, the FDA, and the states as they set up their programs and prepare to launch.  He also regularly works with many of the biggest names in the industry on their day-to-day legal affairs and has successfully defended direct sellers before numerous state and federal regulatory bodies.  Spencer is a member of the Utah, Idaho, Colorado and Missouri bars, and is an active member of the Direct Selling Association’s Lawyer’s Council and the Government Relations Committee.  In addition to being a founding member of The Direct Selling Symposium Group, he is also a frequent speaker at numerous industry functions including events sponsored by the Direct Selling Association, and is a contributing author to industry publications.