Dear Rackspace

I am actually a fan of your new Cloud Servers service. There are some huge benefits in using your service that as both a marketing geek and affiliate I can highlight and potentially drive you a lot of business.

However today you have just introduced a payola scheme that will make every one of my clean affiliate links look like a paid link, thus I am going to have to nofollow every single link I give you, forever.

You want me to use badges like this, and in exchange will give me “Goodies” of an unspecified nature.

Powered by Rackspace Cloud Hosting

The links are visible, nothing is hidden, but all the same it is effectively a paid linking scheme.

Here is what they said in an email sent to customers

Our New “Link-To-Us” Program
We’re also launching a new “Link-To-Us” program today. In essence, customers who post new links or change their old Mosso links on their websites to our new http://www.rackspacecloud.com site will receive special goodies. The more sites you post a link on, the more great stuff you will get. How cool is that? Please check out all the links here: http://www.rackspacecloud.com/links

Thanks so much for being a part of the Rackspace family, and please keep the feedback coming so that we can continue to build the most complete and easy-to-use cloud platform on the web.

The sad thing is this would all be unnecessary if you just made some minor changes to your affiliate program.

The Rackspace Cloud Affiliate Program

As far as I am aware, the Rackspace Cloud affiliate program is effectively “customers only”, as in you have to actually create an account, but you don’t have to necessarily spend anything on their various cloud services.

That being said they have a decent Cloudfiles storage product, and their CDN is reasonably priced, offers incredible low latency, and has a strong API.

The Cloud Servers product is new, the API is still in beta, and on first glance looks to actually be more expensive than using the Slicehost sister service, but if you are looking to create a highly scalable platform, there are significant advantages.

The Mosso Cloudsites service is also highly regarded, though you have to be careful on processor cycles – for an affiliate the referral payout on Cloudsites is much more attractive, just a shame it isn’t monthly recurring.

Problems With Rackspace Cloud Referral Program

Have You Heard About The Rackspace Cloud Referral Program?

Here is how it works:
If someone you refer to Cloud Sites hosts with us for at least 31 days (past their first billing cycle), we will either credit your account $100 or cut you a check for the same (if you want the check, just sign some tax information and that’s it). For all Cloud Files and Cloud Servers referrals there is a $10 referral commission.
There is no need to register before participating, simply have any referral use the primary email address on your account as the ‘referral code’ during the sign-up process online. To give you credit, they MUST enter your email address when signing up. Questions? Don’t hesitate to give us a call anytime. 1-877-934-0409.

One of the big problems is the referral code – you have to encourage people to enter your primary email address as a coupon code.

The obvious workaround is to create a new primary email address for your Rackspace account (and display it as an image)

It would be so much easier if you could define your own coupons

The next problem is incentive – why would someone use my Rackspace referral code?

Rackspace do not currently offer their own incentive to use a coupon, so it would be down to an affiliate to offer something of significant perceived value as an added incentive.

I have something planned for that, that will only be available to people who sign up for a Rackspace Cloud account using my email as a Rackspace coupon. (note: they are still using the mosso.com domain)

I currently have no idea how to make delivery of bonuses scalable, as there doesn’t seem to be a reporting interface for affiliates in the current control panel – maybe they have a dedicated affiliate panel as well, under their original Rackspace affiliate program.

Added Friction

Rackspace might think that not running a formal affiliate system, and just using email addresses somehow removed friction from the referral process, but in many ways it adds friction for serious affiliates.

80% of new customers will be referred by only the top 20% of affiliates, it might even be 90/10 or 95/5

Not Suitable For PPC

There is no way to effectively track this affiliate program offering

• no subids
• no deep linking
• no way to export data (that I can see)
• no thought to integration marketing

Disclosure

This Rackspace marketing campaign seems totally unworkable, especially the direction disclosure is taking.

I am sure Robert Scoble will love the idea of his employers shilling for links.

Izea & PayPerPost have more transparency and better disclosure than Rackspace in this new marketing campaign.
That being said, I always wonder what benefits large blogs have when they frequently have followed links to their hosting providers. Sure they like the service, but that can’t possibly be the full monty.

Adage Power 150

Over the last few days for instance I noticed that Advertising Age have rejigged their Adage Power150 which I previously discussed a few months ago. It is great to see that Google PageRank has a lot less importance, and the inclusion of Yahoo link data, but there is an over reliance on Technorati.

Technorati is easily gamed, because they count links from the sidebar and footer, which can easily be encouraged by creating widgets and WordPress Themes. They do try to clean up their own Top 100 list, manually removing blogs that seem to have an overbearing number of links from viral content.
There are also some aspects of how a theme is designed that have a huge affect on how many links Technorati claim from a single blog, or the number of blogs that Technorati think are at a single domain.
Technorati currently accounts for 70 of the possible 150 total points a blog can receive, and the top ranking blogs can gain close to a full quota, unlike PageRank for which only 6 or 7 points can reasonably be attained.

You will notice that a lot of the Yahoo references show zero – values returned from an API need to be cached and discounted if they are zero, or return a number that is a significant change. I have seen Yahoo numbers drop from 30K links down to less than 9K, only for them to rebound.
It should also be noted that Yahoo also give credit for nofollow links from places like Delicious, Stumbleupon, and even blog comments. Not all links are created equal.

There is a bonus with the changes – I have gone from around 30 on the list to 17 or 18, and Adage is a low but consistent traffic source and has certainly extended my reach with new subscribers.

Top 100 Make Money Blogs

Another list that sends traffic daily is Mark’s, but again it suffers from a number of anomalies.

First of all PageRank plays a visible factor, or I am sure Yaro would be placed a few points higher, he used to be a PR6, and whilst it might not affect position so much, I have highlighed the other sites that currently have a penalty.

There also seems to be a problem with the Technorati rating on a number of blogs being much lower than it should be. I am not sure if this is a canonical domain problem, or some kind of new factor being applied to specific domains for data accessed by API.

Niches

Many niches don’t link out as much as meta blogging and technology blogs, and those in related niches such as venture capital.

As an example regular reader Lucia also has a knitting blog – I know that at times she gets 3 or 4 times as much traffic as me, even without social media influence.

PR3 (I remember it being a 4?), Technorati rank 44,000 (141 blog reactions), Alexa around 200K

The current statistical measures people use just don’t relate to the vast majority of bloggers.

Existing Stats Are Not Accurate?

Alexa is based upon toolbar usage – though their own toolbar isn’t very useful for many people, webmasters in the meta blogging niche can recommend the highly useful Search Status toolbar for Firefox that feeds Alexa with the same data.

Compete used to suffer from poor uptake of their Firefox toolbar because of problems with Firefox, but when Compete was added to the Search Status toolbar, again meta blogging and SEO blogs saw a boost.

With Technorati being used as a factor in so many monetization services, various methods have been used to boost links from other bloggers. Whilst they might get manually edited out of the top100 blogs on Technorati (and I have written how to avoid this several months ago), their numbers still get reported through the API though there is no guarantee that will last forever.

What would top bloggers do if the API for Technorati starts to report zero for anyone that Technorati feel is gaming the system?

Quantcast

Quantcast is accurate, but only if you include their tracking code on your blog and get “Quantified”

If you don’t, you end up claiming they are inaccurate in your end of year stats ;) – sorry Rand, I couldn’t resist that one.

If you compare our data and the SELand data to what Compete, Quantcast or Alexa are reporting, you can see how tragically inaccurate those services are. Sadly, that’s no anomally. Everytime I get access to a client’s visit data, I’m always curious to check the three and have not once found accuracy, even on a relative basis. Third party traffic metrics still have a very, very long way to go.

Just to give you an idea of what happens if you don’t add tracking code to get quantified, here is a comparison between this domain and DoshDosh, Search Engine Journal, Search Engine Land & SEOmoz.

note:the Quantcast images will display much clearer in a feed reader, they are limited on display width on the blog and forced to a smaller size

Search Engine Land traffic is directly measured, as is my own, the other sites are just a panel estimate. As SEL effectively makes the others almost invisible, lets replace SEL with Marketing Pilgrim

You can see some clear traffic spikes in the panel estimates, probably due to click traffic from other sites which have Quantcast code embedded such as Digg

In fact of the major social news and bookmarking sites, only Digg and Propeller are Quantified.

Why IzeaRanks IS Needed, But Might Be Rejected

When you create a page on a blog to help you sell your advertising inventory, how can an advertiser trust the traffic figures you give them, and why should they have to research whether you in some way gamed the statistics?

If you are a large publisher and it is a significant advertiser, you might be willing to give them access to some real statistics, such as Google Analytics through shared access, or your advertising administration system might provide reasonable stats to advertisers. As an example B5Media use Valueclick – I would hope Valueclick have some tools to provide statistics that can be verified before an advertiser makes a purchase.

Certainly Problogger isn’t listed as Quantified

For smaller publishers it would be possible for them to use existing services like Quantcast, but they don’t, because using Quantcast isn’t being encouraged by the people that count… the monetization services and advertisers.

For all the negative publicity Izea has had due to their PayPerPost service, one thing remains clear – they are an advertising company looking to help bloggers make money. They are not a competitor.

I would be more worried if I was placing tracking code on my blog if Izea in some way were a competitor creating content, such as Performancing with their Metrics service, which Izea themselves almost purchased though then it was a different animal, and not just a branded version of an existing tracking service.

I am a firm believer in not making things too easy for competitors, well with this blog I don’t care so much, but certainly for niche sites. I don’t worry too much about monetization services gaining stats, and I never looked on MyBlogLog having access being a problem. I am not sure if Blogcatalog are collecting anything, but again, they are not exactly running a blog network.

The IzeaRanks interface is honestly pretty basic compared to what is offered by Quantcast as far as raw traffic stats, and you are certainly missing all the segmentation data (though I am not sure how reliable that is).

Izea’s “RealRank” is based upon the following factors (from their announcement)

• 70% weighted towards visitors per day
• 20% weighted towards amount of ACTIVE inbound links per day
• 10% weighted towards pageviews per day

I am not sure whether Izea have come up with a way to have only “Real” pageviews and visitors counted, as many stats packages have problems with the pre-fetching of pages from Stumbleupon causing massive errors.

The active inbound links is an interesting statistic. Links that deliver real traffic. It is relatively easy to build up links and gain PageRank from obscure sites, or to game rankings with themes and widgets, but those links rarely get clicked on by visitors. Even blogrolls are pretty much ignored by visitors unless you have an unfair advantage of your sitename starting with the letter A ;)

Many people state that the value of RealRank will be based upon how many bloggers use it. That is partially true, but the real traffic and unique visitor values will be valuable to advertisers even if just one blogger signed up for the service.

I am disappointed that Izea are not doing anything with feeds, though it is much easier to do that with WordPress blogs than blogs on Blogspot, especially with the way Google have now integrated Blogger and Feedburner. The technical skill that would be needed to feed a feed into izea and back out to Feedburner would cause countless technical support problems, and Izea have enough technical support problems with some of their other services, and no end of headaches.

There is an API, I am sure some smart people will jump on it and use it to provide something useful, though I am not sure how quickly that will happen. The usage restrictions of 5000 calls per day is generous.

It is true that Google might currently look on javascript from Izea as an indication of writing paid posts, but hopefully with Social Spark that will be cleared up. Social Spark will offer total transparency. If you are doing nothing wrong, it probably isn’t going to be a major problem even if Google clock up even more false positives for a short while. If you are doing something naughty, you are probably going to be caught anyway.

Do You Have An Advertising Sales Page?

If you have an advertising sales page on your blog, have no doubt that advertisers will start to expect the availability of real statistics, not something you quote from AWStats.
AWStats typically reports around 6x as many page views compared to javascript based tracking on my blog, and quite a few more unique visitors.

You could include Quantcast, but you might as well include IzeaRank at the same time especially if some smart people come up with a way to present the stats effectively.
I can see Paul’s point at Mashable, that Izea maybe should have concentrated on the whole of the internet, and not just the blogosphere, but you could argue that the BBC or the Washington Post should be included in the Technorati Top100 as well, because they offer RSS feeds.

In my mind the individual rating of blogs by RealRank is meaningless unless it it put into context of their topical niche, such as I could compare Mashable with Techcrunch on Quantcast and discover that neither are quantified, so the statistics are totally worthless.

I can understand why Darren doesn’t necessarily need it, or other B5 Media Blogs, but many niche bloggers do need something they can use to demonstrate their relative worth. Just a week ago a key tip from Shoemoney on Darren’s blog was about a clear advertising page.

Is there a difference between clear and transparent/honest/uncoloured ?

How much creative license should people use to sell advertising?

This was previously written about by Ted Murphy of Izea, and vehemently defended by Techcrunch, so it is surprising that they have made a significant change in their stance without also making a public statement about it.

I also wrote about this situation in a previous article on paid links and the PageRank update (round 5).

Here is their previous links to sponsors post from back in November 2007

Here is Techcrunch’s most recent post thanking their sponsors in December 2007

Precautionary Or Suggested By Google?

Techcrunch was frequently being highlighted as a site that might be abusing Google’s Webmaster Guidelines, but somehow immune from a penalty, and also had a reputation for being critical of paid links in content (though one of their advertisers is Text Link Ads, and I believe they have also had advertising from sister service ReviewMe)

I can think of 3 reasons Techcrunch have made this change:-

• They have made a unilateral decision that linking to sponsors without nofollow was in some way hypocritical and frowned upon by their readers
• Precautionary based upon analysis of the Google Webmaster Guidelines
• Suggested or advised by Google

The reason Techcrunch has made a change is extremely important, because hundreds, maybe 1000s of bloggers currently link through to their sponsors on a weekly or monthly basis, effectively copying the Techcrunch model, and most do not include nofollow on the links.

I think it is also important to point out that Techcrunch hasn’t made this change retroactively. To have a clean slate they should go through all previous content and add nofollow to all links to sponsors, possibly even in editorial content.

I honestly don’t think it is the first option – Techcrunch after all are still accepting advertising dollars from Text Link Ads who offer various in-post advertising, not just sidebar linking, and unlike Izea (PayPerPost), have given no indication of supporting nofollow on the advertising links they sell.

If Google did contact Techcrunch, shouldn’t they also make an official statement on the webmaster central blog giving advice to all bloggers that this practice is looked on as paid links, and could be subject to a penalty?

It seems Google want all links within content that “wouldn’t exist without payment” to use nofollow, but seems to be focusing on services like PayPerPost, and not other forms of links which wouldn’t exist without compensation.

• Matt Cutts frequently links to Google from his personal blog – if he wasn’t employed by Google, those links would likely not appear as frequently.
• Google employees link to outside sites all the time, and they are frequently sites that are “flying the Google flag” in some way, prominent Adsense partners, large corporate partners etc.
• Shareholders frequently link through to the companies they invested in (I wonder what Fred Wilson might think about not being allowed to link to Twitter)
• I know Robert Scoble is leaving Podtech on 14th January, but Podtech have always had SEO friendly links to their sponsors, both on Podtech and on Robert’s own blog
• Google themselves sponsor events such as Leweb3 recently, and for as long as I remember, links have always been part of event sponsorship packages, even before Google. Even attending an event or being an exhibitor, one of the “perks” is often some kind of profile online along with a link.
• On many business directories, you get a free listing, but if you want a link to your website, you have to have a paid entry, whether the links are followed or not. Yahoo wouldn’t give me a free listing as this is a commercial blog – I wouldn’t honestly buy a Yahoo entry for $300 for the traffic
• Techcrunch and many other sites still get away with thanking their advertisers with links that are followed, and many still have graphical advertising without nofollow
• Search Engine Land and the SMX Events (and even Sphinn) wouldn’t probably exist in the same way without corporate sponsorship, very often by the large search engines. Should Danny nofollow every link in every post he mentions Google, Yahoo or Microsoft?
• Rand has mentioned the occasional client within posts, and SEOmoz does have a clients page – should all links be nofollowed to clients? Should there be a difference between a $10, $100 and $10,000 client?
• Carsten Cumbrowski when writing on Search Engine Journal has frequently tried to get clarification from Google regarding affiliate links that pass juice, to no avail.
• Shoemoney has a great disclosure policy (blanket coverage like this is honest), stating that “You should assume I have motivation for linking to everything on this page and will benefit from it somehow.” – maybe he should now nofollow every external link?
• In the past I have received income from both Google Adsense and PayPerPost – that means there is a certain amount of earned goodwill.

Should I now nofollow every link in this post because it is in some way previously compensated?

Just before Christmas I received a “Postie Pack”, with a few small trinkets that Tamar Weinberg would be proud to add to her collection of Schwag, so I am “double cursed” – lots of people earn similar (much more expensive) trinkets from Google every year.

Even worse, as I have hinted in the past I am looking at creating a startup that is affected at least partially by this issue, falling in the grey area of employees, stock holders, semi-automated contextual linking, affiliate links etc – I am triple cursed.

I couldn’t possibly include followable links in this post, so why bother linking to anyone?

A Review Is A Resource

When I write a review, I try to make it valuable content, often 3000 words or more, and I ensure I have editorial discretion on who I link to, not just to someone ordering a review, but also to other sites, whether they are competitors, or useful resources that are related to the review I am writing.
I also like to have the option of linking internally to related content.

Who you link to is likely looked on as part of ranking calculations used by search engines because it helps define the topical authority of a resource.

The compensation I receive from writing a review doesn’t cover the time I spend on them, so for a review to bring in search traffic and potential subscribers is important.

Technical Hurdles

This site being created using WordPress also offers a technical challenge that currently there isn’t a solution for. If I reference another WordPress blog post, it is most likely to receive a pingback. However spam detection software is likely to spot that I have nofollow on a link, and flag me as a pingback spammer.

Thus Google is forcing me not to link to blog posts from compensated reviews just in case I might get myself blacklisted as a spammer.

WordPress does not have granular control of pingbacks, and I doubt Google are going to fund the development of such control.

There is another problem of course, both Technorati and Google Blogsearch ignore links with nofollow, so even if I give someone an editorial link from a compensated post or paid review, they might not find out about it unless they set up specific Google alerts for their domain name being mentioned.

(note to Lucia: Don’t solve this one unless Google pays you)

Paid Content or Paid Links Are the Devil?

The next thing Google will dictate is that all compensated content should use Yahoo’s robots-nocontent class so that it doesn’t appear in the search engines at all.

This really is looking less and less about the quality of search results, and more about the failings of Google’s algorithms.

If Google paid me for a review of Google Reader, I should be able to link (without nofollow) to specific features of their terms of service, their faq, the Google Reader blog etc at my own editorial discretion.
I should also be able to link to other quality reviews of Google Reader, useful Greasemonkey scripts, Howtos etc, and above all competitors.

Those people didn’t pay for the review, I should be able to link to them without nofollow

I should also be able to link in an editorial manner to the site purchasing a review, as many don’t even request a link… seriously – but it appears Google have problems with the quality of links from anyone not in corporate employment.

This Is Different To The Webmaster Guidelines

Time to rewrite the Google webmaster guidelines yet again, and make everything abundantly clear exactly what classes as compensation and what is allowed – no fuzzy grey area that is biased against the self-employed, the small business owner or the less well off.

There is absolutely no way I can comply with these current new demands, I would have to stick nofollow on every link within some of my most popular and highly rated content.

Ted Murphy rightly questions Google quite openly to explain why PPP bloggers are being punished for not using nofollow on links, yet many prominent bloggers post quite blatant pagerank passing links to their advertisers every chance they get.

Not only do they mention their advertisers in “Thanks To Our Advertisers” posts, but they also name drop them every chance they get as a form of disclosure.

As an example, almost every time PayPerPost was discussed on Techcrunch , either Text Link Ads or their ReviewMe service was also mentioned but rarely other services such as Sponsored Reviews who haven’t got the same advertising budget.

Buying advertising seems to generate a lot of goodwill.

If Techcrunch regard them as advertising, what reason would they have to not include a nofollow on the links? Advertising has very little if no editorial value.

I get a penalty because I sometimes spend 10 HOURS writing a review of a company for a measly $130, but then I also get other revenue, it is more additional compensation and a discount on what I could charge for consulting for having it public, much like you can get building work cheaper if it can be a show home.

All these advertisers have done is paid Techcrunch money.

The juice Techcrunch passes might be worth 100+ paid posts.

Why Such A Strong Reaction?

So today Duncan trys to defend Techcrunch stating that the links are disclosed and they are not distorting the trust with advertorial content.

That means Techcrunch are selling pagerank

It doesn’t take any time to post a list of 8 links to advertisers. Google’s issue is with PageRank passing links. It is nothing to do with disclosure.

Wouldn’t they like to see Google make a statement of exactly why “thanking your sponsors” kind of advertising links are OK, and PPP links are not?

No, because if Google closely examined Techcrunch in the same light as paid reviews, they would probably find that these “thanking the advertisers” links are distorting their rankings more than paid reviews from D list bloggers.

Techmeme – It Seems Techcrunch Have To Link To You To Be News

The news is actually 2 days old already, and Techmeme have only picked it up because Techcrunch linked to them.

This story was news 2 days ago. My post which included a link to PayPerPost has already been linked to by both Search Engine Land and Search Engine Round Table, two of the highest authorities on these kinds of issues, but it seems Techcrunch determines whether a story is newsworthy if it is related to search engine marketing.

There seems to be a core group of “news breakers” and if they don’t link to a story, it isn’t relevant to Techmeme.

The problem is that anything related to Google is technology news, and their primary focus is their search engine and things that have an effect on it.

It seems Techmeme place a very small weighting on search marketing blogs, despite them having more historical knowledge of Google than many of the tech bloggers, and thus can provide more detail and historical context.

I suppose I should be grateful to Techmeme for linking through to a syndicated copy of my original article on WebProNews, posted a day later than the original.

(note I don’t link through to legitimately syndicated copies of my articles because of duplicate content but I am grateful for all the articles they pick up)

This Isn’t A Pop At Techcrunch

This is really Google’s fault for their unclear guidelines that even has experts scratching their heads. I have had many renowned watchers of the search marketing space state that they don’t regard the few paid reviews I write as any kind of search engine spam, and that they have value. I have had them syndicated, linked to and achieve some success on social media sites such as Sphinn.

Want an example of a paid review? How about my WordPress SEO Masterclass

That is about as close to the line of search engine spam as I have gone, and that gets me a -1 or -2 penalty on my PageRank.

Duncan, seriously Techcrunch should be in the PPP camp on this one, as Techcrunch have been a supporter of Text Link Ads (or supported by) for some time.

Andrew Ooi has compiled a short list of Malaysian sites, many were as much as a PR5 previously, and currently show a PageRank of zero (a white bar)

Examples include:-

Colleen’s Simple Kind of Life and 5xmom

The numbers seem to be stable across multiple data centers

There doesn’t seen to be any change in prominent Search Marketing sites such as Search Engine Round Table and Search Engine Journal, and other popular bloggers such as Emom and Yaro still seem to have their degraded but still “head above water” rankings.

Meanwhile Matt Cutts is playing around with $200 PCs and the negative views of the blogosphere regarding Google.

Meaning Of PageRank Unchanged

Google have had more than a month to change the description of PageRank on their website.

I haven’t seen any change to Search Engine Rankings and there is still no way to request reconsideration without admitting guilt.

The Webmaster Help Center also doesn’t give an option to report that you think Google is making a mistake in their manual evaluation.

How do I request reconsideration of my site?

If your site has previously violated our webmaster guidelines, and you’ve made changes to it so that it now meets our guidelines, you can ask Google to reconsider your site for inclusion in the index.

In addition, if you recently purchased a domain that you think may have violated our guidelines before you owned it, you can use the reconsideration request form to let us know that you recently acquired the site and that it now adheres to the guidelines.

To request reconsideration of your site:

1. Sign in to Google webmaster tools. The webmaster tools Dashboard opens.
2. Under Tools, click Request reconsideration and follow the steps.

Google do now call this reconsideration, not just reinclusion, and Matt notes that you can still be in the index even though you have a penalty, which he updated November 4th 2007

I did find something cool though which I hadn’t seen before, maybe I missed it being reported, or didn’t pay much notice.

I am still being crawled frequently and there are some interesting spikes. It is a pity that the graph doesn’t line up with the scale.

From January people using PayPerPost will be able to use SocialSpark.

SocialSpark Alpha screenshots do still have PageRank listed, and that will likely be removed totally unless Google change their stance.

I still don’t sell PageRank, but traffic hasn’t changed, if anything it has increased as I write more content that people want to read and link to, and it even brings in some search traffic.

Google is making huge mistakes with these updates. I know many people receiving penalties sell links, and I am not trying to defend them.

When you get someone like regular reader Rob, a real expert in SEO, who based on the links he receives should be a comfortable PR4, or possibly a PR5, currently a PR0, because he wrote one paid review using nofollow on the links.

Then you get affiliate marketers like Vlad who may have written a couple of high quality reviews, and sold some advertising.
At the same time he also is an affiliate with some affiliate services which offer SEO friendly “clean links” for their merchants.
For a website owner they are still links from which they will be making money, though the money from affiliate marketing is variable – the links still affect search engines, as do many other affiliate links which feature 301 redirects.

Now whilst Aaron’s issues might be appeased as a result of the recent interchange with Matt, that is really just the tip of the iceberg. Aaron hasn’t been lynched.

To finish I am just going to steal the words of Michael VanDeMar which he posted as a comment on Matt’s Reporting On Paid Links post.

Honestly, Matt… and if your legal team won’t let you answer this, then I understand, but if you are allowed to answer then I (and I’m sure others) would really, really like to know… as the G algo stands now, exactly how much off balance would you say it is due to the insidious act of buying and selling text link ads? How many man hours have you spent combating this crime against humanity, and at what cost? And is it seriously skewing the results that much, that all the efforts spent on it were, and continue to be, justified? Is the algo that fragile?

The other main reason that I disagree with this idea is that you think (or appear to be implying, anyways) that Paid Link === No Human Review. This not the case 9 times out of 10. You should know that.

Update – Official Statement From Izea (PayPerPost)

An official statement finally from Izea (PayPerPost) on their blog regarding Google PageRank Updates.

We now know from some of our friends inside of Google (thanks “bob”) that they are now looking for phrases such as PPP, PayPerPost,ReviewMe, Payu2blog, etc. in the text of your post. For that reason I would suggest refraining from using any type of this text in the body of your posts, sponsored or not. When you disclose thank the sponsor, not PPP.

I would like to thank Ted (CEO of Izea) for having the courage to say something about this in public, something it seems Google so far have not managed to do, and rarely do so on an official company blog.

Lisa Stewart of Bigfoot Web Marketing also has an excellent writeup of the decision process on the PayPerPost boards that ultimately led to Ted Murphy making a statement.

As I wrote in my initial preview of SocialSpark, there will be new metrics for gauging the authority and influence of a blog, to help determine advertising spend, not only based upon traffic and demographics, but also on past performance with CPM and CPC data also being made available.

With SocialSpark, any required links will be nofollow, though there is an option for editorial links without a nofollow.

All the negotiation about a particular campaign will be 100% transparent, thus there will be an audit trail to prove that an advertiser didn’t require specific linking, and that audit trail will be open for public, or search engine approval.

There will be full disclosure within each post, with a link though to that 100% transparent audit trail, far exceeding any stipulations or recommendation from either the FTC or WOMMA.

Advertisers will no longer be able to require a positive tone, everything will be neutral, bloggers can write what they want, but that may affect click-through rates and return on investment.

Based upon this, everything seems at least on the surface to be everything a search engine would want to see and encourage.

This Isn’t Going To Work

At least not without some cooperation from Google, Yahoo, Microsoft and Ask.

Other than the 100% transparency, a lot of this has really been available using the PayPerPost Direct system introduced by Izea 6 months ago.

Whilst on the surface the form for PayPerPost Direct suggests that advertisers were able to make specific requests for the tone, and specify linking, PayPerPost direct also provided a negotiation interface.

In many ways you can look on the initial order process as being purely suggestions, and the real final negotiated terms were often vastly different to any initial enquiry.

That was certainly the case for every review I wrote, yet I still received a PageRank penalty

In some cases I even finished the negotiation process, but just didn’t have time for a full review, so declined or gave a quick link for free.

But I have still received a penalty to my Google Toolbar PageRank, either -1 or possibly -2

A totally open system, with absolute disclosure and a full audit trail is the ideal scenario for internet users, and the search engines really have to make a choice, embrace the openness, or everything IS GOING TO GO UNDERGROUND.

PageRank Is STILL In The Equation

You will notice on the following exclusive screenshots that PageRank is still being displayed on the new interface, and Ted tells me that a final decision as to whether Alexa and PageRank will remain is still to be made.

If it does remain, I would hope they are looked at as the least important statistic, those used to find new publishers who haven’t been using the SocialRank code on their site for long enough to generate reliable statistics.

Difficult Choices

Both search engines and bloggers have difficult choices to make in the coming months.

The PayPerPost MarketPlace represents 11,000+ Advertisers and 85,000+ Bloggers, and I am sure that is set to increase.

It is noticeable that only a fraction of even PayPerPost bloggers have actually received some kind of penalty, and those are typically ones who were prominent in the PayPerPost Direct marketplace.

The funny or sad thing is that there has been a lot of collateral damage. As an example take Rob’s situation. To my knowledge he has never written a review for PayPerPost, yet is listed in the marketplace, mainly just to check out the system.
As far as I can see, and I have been reading his blog since he had just 3 subscribers, he also doesn’t sell links, hell he doesn’t even link to his own niche sites from his blog.

Rob’s PageRank took a -2 penalty purely from association

Thousands Of Sites Remain Unpunished

There are plenty of sites that are selling PageRank pasing 125×125 advertising spots that have slipped under the radar, yet sites such as SERoundTable and Search Engine Journal have been quite obviously targeted.

I know sites where Matt Cutts is a frequent visitor, and has even read paid reviews which have not had a penalty to their Google Toolbar PageRank applied.
The reviews were not “under the radar” but written by an authority in the topic being discussed.

There are many very prominent sites who every week, or every month blatantly thank their sponsors in what amounts to a post just full of PageRank passing links with no other content.
At one time these pages contained at least an introductory paragraph for each one, but often you will just see 8 or 10 links with no other content.

Time For An Olive Branch

Isn’t it easier for search engines to encourage good practice that is accountable, than to punish sites indiscriminately or based on some level of personal bias.
Without doubt there is bias and double standards in penalties that so far have been applied, and this is not a purely automatic process.

To finish here are a couple more exclusive screenshots to wet your appetite, featuring some of the statistics available in the new interface, and what appears to be a search result.

What Is Social Spark?

• Advertiser Social Network
• Advertisers Interact With Bloggers – build up a network of media outlets for their niche
• Highest Standards in Word of Mouth Marketing – PayPerPost have up until now been responding to market forces and allowing the market to define itself. They are now going to be taking a proactive roll to lead the industry.
• Unique Blog Welcomeâ„¢ Sponsorhip – this is an amazing idea using overlays to present a blog sponsorship greeting to a visitor, and then the advert minimizes in a corner of the display. This is a much more visible method. From what I have seen this is a lot like the various types of corner advertising, but visitors will have already been greeted with a message.
  (this would also be a cool aleternative to popups & interstitials for any kind of marketing message) This option doesn’t take up any screen real estate.
• Accountable Analytics – current methods for advertisers to present the viability of advertising on a particular blog basically… suck – you name it
  • PageRank is worthless – you can have a site with a PageRank of 7 and almost no traffic, and at the same time have a PR3 blog that gets thousands of visitors a day.
  • Alexa & Compete are easily gamed and are highly biased in many verticals such as web design, SEO and technology, and the sites people in those industries frequent.
  • Quantcast would be useful… but very few sites include Quantcast code on their sites, even those who are marketing aware.

  Advertisers will be able to compare CPM and CPC advertising spends across their whole advertising spend and have full access to demographic data.
  The aim is to provide advertisers and bloggers with as much relevant statistical information as they can.

• Open Platform – Izea will have their own API that will be available to the public, but will also leverage Google’s recently announced OpenSocial API
• Feedback – Advertisers can leave feedback on Bloggers, and Bloggers can leave feedback on Advertisers – everything is open…. transparent
• Integration with RSSBrief
• All data is searchable – this helps Advertisers find suitable bloggers to promote their brand
• Real Rank based upon Real unique visitors and page views (with widgets available to display on your blog)

Here is what a blogger profile will look like

Colleen and and the amazingly fast Jim have already got posts up before me.

Colleen loves the idea of realistic stats not based upon PageRank and Alexa.

Jim is expecting the existing PayPerPost service to die off

Sponsored Posts in Social Spark

• Dynamic pricing for all blogs to maximise the return on investment for an advertiser
• In post requirement for disclosure badges
• Return on investment by tracking clicks within the interface on information links
• Advertisers can pay for additional opportunity exposure in the marketplace
• Bloggers can book advertising for a whole week and reach out to advertisers on opportunities they are qualified to take.
• Review exchanges
• Two Types of Links
  • Required Links = Nofollow
  • Suggested Links = Does not have to be Nofollow

Blog Sponsorship

• Sponsorship is per day
• Medium Rectangle or video

Here is a very rough screenshot of the blog sponsorship configuration page, the advert appears much nicer on an actual page, but isn’t the fancy kind of fly in advert I expected.
I didn’t see it flash animated coming in, or how it hides exactly.

What wasn’t specified is how they handle tracking within RSS but the sneaky side of RSSBrief is what I was expecting.
All blogs crawled by RSSBrief and can be approached by advertisers, and have been crawled already.

This system is in Alpha… moving into a closed beta, full launch in January 2008 – hopefully I will be able to do some testing and be allowed to write more in the coming months, but I will need to bend Ted’s arm… a lot.

For those asking, I didn’t catch any direct reaction to PageRank other than it isn’t exactly very reliable or truthful about whether a site being looked at is good or bad.
Lets face it, we all know PR8 sites that actually suck and are almost all duplicate content, and PR2 sites that are 100% original content.

Update

The technology “A List” have titled their own announcements with typically controversial titles, though what they have written is surprisingly neutral.

Mashable with PayPerPost Launches Social Network for Shills comments:-

The bigger question here, at least to me, is will IZEA start to receive a bit of positive press from the “A-Listers” that have made a living out of deriding them and calling the system evil?

Michael Arrington’s titled “PayPerPost’s Latest Gimmick – SocialSpark” is neutral other than the last line:-

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.

But the best line is from Michael Arrington in the comments

Zizi – no, there are legitimate reasons for bloggers to work for PPP. Writing paid posts isn’t something I would do, but with proper disclosure it certainly doesn’t cross the line (in my opinion). It’s the edge cases that create the train wrecks.

Now considering Michael Arrington, from the stage of the 2007 Mesh conference called Ted “The Most Evil Person In The Room”, I look on the above as quite a significant change of heart.

Are we likely to see Techcrunch running transparent statistics from SocialSpark in the future?

Update

Ted Murphy has posted a few more details of SocialSpark on the Izea blog.

I love his concluding remark:-

All required links in SocialSpark sponsored posts will carry the no-follow tag (or something more appropriate) because… well, I guess the most advanced search algorithms in the world need our help.

Ted has some interesting observations about why this new community won’t encourage advertisers to buy directly (though maybe some advertising they will buy direct).
He also emphasises that Socialspark will be the first service to provide an auditable trail of disclosure for the advertiser, and have a totally open database that anyone interested can see.

There are some great speakers scheduled, and some announcements coming later in the day.

A great feature is the ability to ask the speakers questions from the chatroom.

I wasn’t able to go to Vegas for Blogworld or Postiecon, but fortunately Postiecon are on the ball and are providing a way for anyone to learn something from the expert line up of presenters.

The widgets in this post will most likely not work in a feed.

A static page with the chat room and the video side-by-side for widescreen viewing is also now available.

If you decide to share this with your blogging audience please link to this original post with a trackback so you get the benefit of a link back to you. There are no trackbacks from the static widescreen page.

PostieCon Schedule

Here is the full schedule grabbed from the PostieCon site

Current Time In Vegas

PostieCon Live Ustream Feed

PostieCon Chatroom

Plausible deniability is the term given to the creation of loose and informal chains of command in governments and other large organizations. In the case that assassinations, false flag or black ops or any other illegal or otherwise disreputable and unpopular activities become public, high-ranking officials may deny any connection to or awareness of such act, or the agents used to carry out such act.

In politics and espionage, deniability refers to the ability of a “powerful player” or actor to avoid “blowback” by secretly arranging for an action to be taken on their behalf by a third party—ostensibly unconnected with the major player.

More generally, “plausible deniability” can also apply to any act that leaves little or no evidence of wrongdoing or abuse. Examples of this are the use of electricity or pain-compliance holds as a means of torture or punishment, leaving little or no tangible signs that the abuse ever took place.

I can understand Om Malik’s reason for not attending, a bad back – nice, clear, understandable, totally excusable.

There is some doubt over Michael Arrington’s claims, for instance Wendy says she posted after confirmation with the organisers.

Michael Arrington’s specific words

I never agreed to attend the conference.

I would really appreciate it if the organizers of Blogworld would post something clearing this up.

Jim Kukral wrote

You forgot to come? At least lie to us, lol.

Digging Into The Facts

There was a little bit of a storm in a teacup just a month ago over a bit of clumsy email marketing, which also involved Techcrunch writer Duncan Riley.

Within that there was some telling evidence to this situation, at least in my mind.

This is what Duncan Riley wrote in an email to Rick Calvert that appears in a blog post on the Blogworld Expo blog (Emphasis is mine)

Sent: Tuesday, October 16, 2007 1:01 AM

Subject: Re: Come Join Us at the World’s Largest Blogging Conference

Brian
I know Michael is speaking, I write for TechCrunch. I’m not sure whether to take this as spam or not, particularly given that I’ve already discussed with the organizers the rumor that I wasn’t invited due to a sponsor. In fact the face that you’ve pulled out a random post on my personal blog makes this sound a lot like spam.

Best of luck with it.

So Duncan acknowledges that Michael Arrington is attending, and qualifies that statement by implying he know that because he is a staff writer for Techcrunch, not because of any misleading advertising material.

There is contrary evidence, Michael declining in the Facebook group but I must admit I do that almost as an automatic thing myself, often after the event. People can always change their mind.

My reading of the facts is there might have been some communication mistakes, these things happen, but with people inside Michael’s own Techcrunch organisation thinking he was attending less than a month before the event, the communication problems are certainly on both sides.

What Really Matters

I said at the start the facts don’t matter at all, but if I was attending, and even as an observer halfway around the world, I can’t believe even a comedy of errors could be maintained for so long without Michael Arrington stepping up and saying he was not attending before the event.

Even Andy Beal, who has his finger on the pulse all the time didn’t know Michael wasn’t going to be at the keynote until he didn’t appear on stage.

Michael Chose His Words Very Carefully

In the run up to Blogworld Expo, Techcrunch were gaining a lot of links and exposure, it would be impossible for anyone with any hint of reputation management and online knowledge to not notice appearing in blog posts for months before the event on an almost daily basis.

But the “I didn’t confirm” was allowed to continue, because it benefited Techcrunch, even up to the time Michael was due to appear on stage for the first time.

Now the truth is out, even more links, links are valuable, and in public relations, there is no such thing as bad press.

The Rumour Industry

Techcrunch is head of the tech industry rumour mill, and as such prints a lot of stories that may or may not be true, and sometimes they get told the information is incorrect, and sometimes misleading information is allowed to persist, because it is good for stock prices.
A good example of that in recent times is the Google Phone, which turned out to be an open operating system for mobile phone manufacturers.

I can understand the need to be the first with the big scoop, the speculation, the increased readership that drives advertising dollars.

But should those reporting use plausible deniability and let it run across the blogosphere knowing that it is totally untrue, but it is good for marketing?

If you are a product manufacturer or service provider, there is a strategic benefit to keep users or competitors in doubt… sometimes. It is not just a marketing thing to leak rumours, and the press and bloggers eat up the morsels anyway.

For a blogger or press outlet to allow news to continue to be written about them knowing it is misleading or false leaves a bad taste in my mouth.

For me, this is a thing of trust. I have lost trust in much of what Techcrunch writes, in just the same way people would lose trust of bloggers writing paid posts without some form of disclosure.

I mention paid posts for a reason, I would have loved as a blog reader to see people’s thoughts of the New Media Fundraising presentation.
That was to include David Cohen, Brad Feld, Dan Rua, and…. Michael Arrington. Dan is an investor in Izea/PayPerPost and has had multiple exchanges with Michael Arrington over PayPerPost, not just ethically, but also the financial stability of the company gaining B round investment from the same group of investors.
David Cohen, just the day before the presentation still thought Michael was attending.

I haven’t seen any reports from the session, so it is possible it didn’t even happen, or the “clash of the investors” was made less attractive.

Plausible deniability just doesn’t cut it Mr Arrington

Michael Arrington Updates

Michael Arrington has updated his post to reflect on additional attacks, and also he has managed to have a chat with Rick the organizer.

It is well worth reading, though I can now see how this happens.

From what I can see

Michael gets far too much email – only reads 10% of it. He should create a more private email for friends, and then get a PA handle the rest.
Michael doesn’t do any reputation management and states that he doesn’t read all the negative commentary – again that could be outsourced

Michael did however state in his update that:-

My response to them was “I’m attending an event this week?”

Thus he was aware before the event that he was expected to be speaking, and knew he wasn’t.

This whole issue could have been cleared up before the event and should have been.

Final Update

Rick has posted the BlogWorld Expo side of the story on their blog.

It seems to me there was a lot more communication than was suggested in the initial Crunchnotes post by Michael Arrington, and to be honest it seems that there was more than even currently included on Crunchnotes after a number of updates.

In Mike’s final update he suggests he should have claimed he had the flu, or similar.