Example: A real estate broker hires me to conduct a seminar with his agents in attendance. Same real estate broker owns an interest in another company This real estate broker client wants me to tell his agents to use this second company. Come on. The ethics works both ways. Broker/owners shouldn't ask for this to be done….but they do.

Another way this pops up is when a big coaching company cuts a deal with the broker: They say if you sell X number of coaching sessions, you, the broker, get to keep X percent of the sale.

So the broker promotes coaching! Yes, everyone should buy coaching!

But the broker doesn't tell the agents about the side-arrangement.

The blogging world and social media are just a different variation of real life. Always disclose conflicts of interest when you are the one who benefits from not disclosing.

Example: A real estate broker hires me to conduct a seminar with his agents in attendance. Same real estate broker owns an interest in another company This real estate broker client wants me to tell his agents to use this second company. Come on. The ethics works both ways. Broker/owners shouldn't ask for this to be done….but they do.

Another way this pops up is when a big coaching company cuts a deal with the broker: They say if you sell X number of coaching sessions, you, the broker, get to keep X percent of the sale.

So the broker promotes coaching! Yes, everyone should buy coaching!

But the broker doesn't tell the agents about the side-arrangement.

The blogging world and social media are just a different variation of real life. Always disclose conflicts of interest when you are the one who benefits from not disclosing.

It is not a question of how easy or difficult it would be for a speaker in front of hundreds of people to say “Hey folks, I'm going to tell you the three tools you need to look at for promoting listings. By the way, Company XYZ is paying me 10% of every sale traceable to this speech of mine, as measured by month-over-month comparisons for six months after this conference.”

You must disclose if you have a paid relationship – easy to say or not, period. A grade school kid could tell you that.

You are either a resource that people can rely on for an objective opinion or you are a shill, a paid spokesperson. Either is OK, just do not try to do both.

To RachelNicole's point – in PR it's been going on forever …

p.s. Eric never buys me cokes, or dinner or anything. I may be a little bitter about it.

It's when the relationship is something more like a partnership, or a sponsorship. On a blog, it's easy to disclose and put down a disclosure policy. When you're up in front of hundreds of people listening to you speak, it's not as easy to disclose.

“Hey folks, I'm going to tell you the three tools you need to look at for promoting listings. By the way, Company XYZ is paying me 10% of every sale traceable to this speech of mine, as measured by month-over-month comparisons for six months after this conference.”

That's a bit unwieldy, and few public speakers are going to be able to do such a thing.

One could say, “I have a business relationship with Company XYZ” but is that enough disclosure? Business relationship could mean you make $1 per sale (which now gets us into the “he bought me a Coke” category) or it could mean you own 30% of the company.

I think disclosure is necessary in some way; question is, how does that work when you're speaking on a panel vs. posting a blog.

-rsh

I do agree with Jeffrey in that the semantics of “the rules” can get a little fuzzy. Discovering the the blogger/speaker was receiving free soda probably going to dissuade me from taking the recommendation as genuine. Finding out the recommender being bought expensive dinners on a weekly basis – this might shift my views. I suppose common sense is the best approach..”Would you feel comfortable if your audience discovered what you were “hiding”?

The details can be tricky. So, I say, just throw it out there. Simply mention a relationship exists and perhaps the general depth of that relationship (a can of coke vs. equity in the company) and think is enough.

Funny thing is, these types of situations have been taking place offline for years. Let's say you're a writer for InStyle magazine, people/companies/PR folks send you “samples” constantly…hoping you'll include the product/service in the issue. Although it is considered normal practice, these writers/editors in print don't disclose, “Hey, Chanel sends me full-size bottles of perfume and beauty products on a weekly basis.” What's up with that?!

Thanks for a great post!

Most readers will smell a paid endorsement or reciprocal agrrement. If you are honest about the relationship, you will probably not risk losing readers. If you constantly shill for the same companies over and over, your credibility is shot especially if it is disclosed at a later time.

Many bloggers want to make money off of their site and if an endorsement will work, then be honest about it. Hell, I still haven't seen anyone work an endorsement into their blog as seemlessly as Paul Harvey used to.

If you want to make some dollars, use your common sense.