PayPerPost: Friend or Foe?

Recently a representative for IZEA came to visit Click Here about opportunities afforded by PayPerPost, a service Paul has written about before. The goal we had in mind wasn't to explore opportunities for ChaosScenario (our relationship with our wide variety of clients would pose too many potential conflicts of interest to even consider), but to see if any of our clients could use the service. I've concluded very little, but I think I have an idea about the 3 main questions I need to consider. Before we get there, though, I have to provide a little background.

PayPerPost must be looked at separately for companies and bloggers. Here is how it works:

1. Companies determine how many bloggers they want to reach, how much they will bid for the posts, what the requirements of the post will be, and who can be eligible to participate (readership, ranking, industries covered).
2. Bloggers who participate in the program search for or are invited to write about something they want to write about based on company, industry, and/or the amount they are being offered. If they find something that strikes their interest, they sign up for it and write a post according to the requirements (word count, etc.).

Here are the rules:

1. Bloggers are required to disclose that they are being paid for their contribution (this wasn't always so), and
2. They must separate each paid post with at least one normal (unpaid) post. The subject matter doesn't need to be the same.

Based on how well the blogger did, and providing the blogger followed the rules, the paying company can rate the blogger's post, which affects the person's PayPerPost reputation. This impacts how many requests they get in the future.

Is it immoral? Not necessarily.
Empirically I see no intrinsic ethical problem with this arrangement. Each blogger must maintain the relationships with his own readers. Since bloggers must disclose that they are being paid for their work, the reader is free do decide if the endorsement has merit.

All people, in business and on blogs, who sacrifice their integrity will see their reputations punished by the marketplace.

But perception is 9/10 of the law
If a blogger's audience objects to their being paid for writing posts, then it is up to the blogger to figure out how to deal with that, or he will lose his audience. That is between the blogger and his readers.

However, justified or not, how other people (mis)behave affects others' perception of us.

So it's worth it, as a blogger and as someone who needs to make recommendations in the best interests of my clients, to analyze this development in the marketplace.

Beware of myopia
It's easy to sit here from our pedestals, as marketing bloggers and media critics, and think that everyone else who blogs thinks about blogs like we do.

The truth is that people consume media -- including blogs -- in all sorts of ways, for all sorts of reasons. I try to branch outside of my circle continuously to remind myself of this fact, and I've benefited (profited?) from the experience.

One blogger claims that she earned $14,000 in one year from PayPerPost, and that her traffic has actually increased since she started (she draws no conclusions about causality). That's not a king's ransom, but it does show how a blogger can be effective using the service, part time.

What's the big difference?
While considering this issue, I'm comparing these things.

1. Advertising - If you accept advertisements on your blog, do you run the ads through a filter to determine a proper fit? Do you have to use the product or service you are advertising? Do you care that your display ads are largely ignored?
2. Celebrity endorsements -  When Michael Jordan receives millions for pitching Nike, do we hold it against him that he got paid for it?
3. Sports sponsorships - Stadiums are named after the highest bidder. Does this compromise the integrity of the coaches, players, or owners? Does it affect your enjoyment of the game?
4. Show sponsorships - When Cali Lewis tells us that the latest podcast was "brought to" us by the new, lower-price Nokia N810, is she to be commended or condemned?
5. Work - Most of us have jobs that pay us a salary and/or commission for providing advice to our clients. Is the quality of our advice diminished because we're getting paid for it?

What do you think about it? I'm really looking for the answer to 3 main questions.

1. Is it ethical?
2. Will it help or harm the medium, over time?
3. With an average campaign cost of $19K that delivers higher click-through rates than traditional display advertising, is it worth it?

- Cam Beck