Getting a Reputation

If you didn’t see it, you probably read about Snickers’ Super Bowl advertisement, “The Kiss,” which featured two men unintentionally kissing after they were both eating the same Snickers bar. Immediately after the Super Bowl, much of the feedback in the blogosphere was that the ad was funny. But the next day two gay civil rights organizations denounced the ad as homophobic. The blogosphere reacted again, much of it negative about Snickers. By that evening Snickers pulled the ad and took down its website. The day after that, Snickers issued a statement expressing that they did not intend to offend anyone. For the remainder of the week, much of the mainstream media coverage was negative for Snickers and there was much debate back and forth on the Internet.

For weeks, the conversation raged online, which affected search engine result pages (SERPs). Meanwhile the press, including The New York Times and USA Today, picked over Snickers’ bad judgment and missteps. More than two months after that commercial aired at the Super Bowl, four out of the top 10 listings for the search term “Snickers” in Google’s SERPs were about “The Kiss” and three of them were negative.

“The Kiss” is the latest high-profile illustration of the long-term repercussions online conversations have on a brand’s reputation. The content of what is written on the Web not only affects the people who read it, it affects the rankings on the search engines and what the media chooses to cover.

The advent of consumer-generated media (CGM) has transformed the concept of brand management. Nowadays it is possible for a consumer to never encounter information created or endorsed by a company, but instead to rely completely on CGM for recommendations and insights. The bottom line, explains Rob Key, CEO of Converseon, is that “you no longer own your brand – your customers do.”

CGM includes community scoring programs like eBay, feedback rating systems like Yelp, opinion sites like Epinions, social networks like MySpace sites, and blogs. Blogs range from the very influential and highly trafficked, like TechCrunch and Jeff Jarvis’ BuzzMachine, to millions of average blogs that in the aggregate can reach tens of millions of readers.

When a company does something considered egregious, such as produce an offensive commercial or provide bad customer service, bloggers often react harshly and create a far-reaching buzz called a blog swarm, which can cause damage to a company’s reputation. In 2006, there were blog swarms that had serious long-term consequences for companies including Dell (dubbed “Dell Hell”), which started when Jarvis complained about Dell’s customer service on his blog, and another surrounding AOL, which began when a subscriber posted his phone conversation with a rude AOL representative to his blog.

Key explains that because blogs are spidered well (due to their large amount of refreshed content and inbound links) they can rank higher than other sites, including corporate sites. In the past, a brand could control the placement of their site with tags and by the way it designed the site’s pages. But Jim Nail, chief marketing and strategy officer of market influence analytics company Cymfony, says that currently corporate sites are getting outranked by consumer-generated sites “and frequently those are the ones that are negative.”

However, it’s not just the first or second listing on SERPs that brands should be worried about. Holly Preuss, principal of Granular Solutions, an online customer acquisitions services company, says companies should be managing the top 10 and particularly the top five because “above the fold is crucial.” Key agrees. He says it’s similar to how companies must manage their brand on the shelf in the supermarket: Companies must manage their top listings – “their shelf space” – to maximize their brands’ positioning.

Brands have to make their top listings a priority. An April 2006 study conducted by iProspect found that when users perform a search, 62 percent of them click on a result within the first page of results, and a full 90 percent of users click on a result within the first three pages.

Andy Beal, creator of the site Marketing Pilgrim, says sometimes companies find a negative post and think, “it’s only one blogger; it won’t have a long-term impact.” But then a blog swarm begins and the negative buzz ranks high in the SERPs. Then the issue reaches a whole new audience as mainstream journalists increasingly use search engines to research new story ideas.

Because consumers rely heavily on the Web as an authoritative source of information, managing a brand’s online reputation has become a top priority for companies. Strategy consultant Amanda Watlington says the participatory environment of Web 2.0 requires companies to monitor and measure their public perception so they are able to take necessary actions to preserve brand equity and maintain a brand’s personality. This necessity has spurred the development of new strategies, tactics and tools.

Monitoring Tools

Agencies like Converseon and Nielsen BuzzMetrics have tools for monitoring social networks, blogs and communities. They measure the volume of buzz, track the source and gauge the emotions of a comment – whether positive, negative or sarcastic.

But monitoring systems don’t need to be expensive or complicated. Granular Solution’s Preuss recommends that companies “think like a customer” and Google themselves. Companies can create RSS feeds based on keyword searches and narrow down the results to a specific domain with tracking systems like Technorati and Feedster. Sites like BlogInfluence.net and SocialMeter. com provide a snapshot of the credibility of any blogger by showing the audience-reach and popularity for the entered blog URL.

New tools are popping up all the time. Pronet Advertising launched Serph, a tool to find what is being said on social media websites. Do The Right Thing is a community that rates companies positively or negatively. Its goal is to hold big businesses accountable.

Once You Monitor, Then What?

Converseon’s Key says that once companies mine the conversation for detractors, they can separate them into two groups. Some are “reasonable” – they have a bad impression or a company had a bad experience with a company, such as poor customer service. And some are “determined,” such as the site StarbucksSucks.com, which feels Starbucks is ruining independent companies.

Catherine Seda, Internet marketing expert and author of the book How to Win Sales & Influence Spiders, says there is nothing a company can do about determined detractors, so companies should focus on the reasonable ones. There are a variety of ways to do this.

Companies need to reach out to bloggers. The sooner they react, the better it is to prevent potential longterm damage, says Marketing Pilgrim’s Beal. Preuss adds that when there is a complaint about customer service, the company needs to fix the problem and then engage the customer immediately by responding to that post.

Noah Elkin, vice president of communications at interactive agency iCrossing, says his company offers “proactive customer engagement” for their clients by responding to posts with helpful information, such as a link to a technical support page. Elkin stresses that they always indicate they are representatives for a company – “the No. 1 rule is to be honest about who you are; then you can participate in the discussion.”

An option for promoting a company’s brand online is to pay bloggers to evangelize it through a service such as ReviewMe. PayPerPost.com offers this service, but is requiring writers to include a small graphical button that denotes that a post is being sponsored. One of the tenets of Word of Mouth Marketing Association’s (WOMMA) code of ethics is that bloggers must disclose for whom they are blogging. To help craft disclosures, affiliates can seek advice at DisclosurePolicy.org, which was created and funded by PayPerPost.

Some experts recommend monitoring the buzz instead of trying to manage it. Cymfony’s Nail explains that there is no controlling what people say and the best you can hope for is to have your side of the story told. He says that “The Kiss” exemplifies this. It created an ebb and flow on the Web of people that started out attacking the ad and then started defending Snickers. Due to that, Nail says Snickers did not need to issue a statement.

For matters that require a timely response, some experts recommend using paid search (pay-per-click links). Preuss says that on the plus side, PPC links can show up in a couple of hours and they let the public know the company is aware of the situation. The downside, says Seda, is that people who might not have been aware of the problem will likely find out about it.

Some experts say that paid search is underused. For example, searching on the term “Wal-Mart sucks” yields negative results for the first 10 listings. Cymfony’s Nail says it is “foolish” that Wal-Mart does not have any paid links to sites where it could tout Wal-Mart’s economic benefits.

“For a company to protect its brand, they should be buying those words,” Nail says. But Marketing Pilgrim’s Beal warns that paid search “is a Band-Aid” and does not replace reaching out to bloggers directly.

An affiliate could mine blog buzz through a monitoring tool such as Relevant Noise’s pingMe notification system – so when someone posts about a product that an affiliate sells, the affiliate could buy relevant keywords.

One tactic for dealing with negative buzz, such as a product recall, is to issue a press release that addresses the concerns. Press release distribution companies such as PRWeb send releases to journalists’ email boxes and optimize press releases, which helps to increase the rankings in news engines such as Google News as well as in the general search results. When a press release ranks high in a search engine, it is one more spot a company’s competition or a negative listing won’t get.

Knock Out the Negative

Issuing a press release is one way that company information can gain a top search engine ranking, and when this happens, negative sites move lower and get moved off the page. Converseon’s Key describes this as pushing detractors off the “visibility cliff.” There are other ways to try to do this.

Post to top-ranking sites: Postings to sites such as Wikipedia or Squidoo can help a brand or affiliate push negative results down and get more exposure. When an affiliate posts to advice sites like LifeTips.com, it allows them to be seen as an industry expert on the things they are attempting to market. Granular Solution’s Preuss says if an affiliate blogs about cars and posts affiliate links on their site in a CPL deal with automakers and has rev shares with accessory retailers, then they could post on LifeTips.com a top 10 tip list for shopping for a new SUV.

Create a blog: Another tool for creating a positive listing and monitoring a brand is to create a blog, which can humanize a company and present its side of the story. If the comments are enabled, companies can get in touch with their most passionate visitors.

Optimize your site and create multiple domains: Author and IBM search expert Mike Moran explains that search results never contain more than two listings from any one domain, so brands should make sure their pages are optimized for the legitimate two listings (#1 and #2 are ideal). If the company has multiple domains (i.e., for subsidiaries) a brand can ethically optimize those sites for the company’s target keywords. Many companies have mini-sites, for which each has its own URL; for example, Starbucks has one for music, one for locations and one for its online store.

Use affiliate programs: Affiliate programs are a way that brands can get additional positive listings on SERPs. But affiliates pose risks because they can threaten the control of a brand. Watlington says brands have to make sure that affiliates, who are custodians of their brand, are in step because “companies spend a lot of money creating a brand and if an affiliate does something like use outdated creative, the brand is then altered.”

If a merchant does decide to have an affiliate program, it’s imperative for a merchant to monitor affiliates and make sure they are compliant with a program’s terms and conditions. For this reason, Converseon’s Key recommends that merchants start with tightly managed and honed programs.

The Merchant Mind-set

Merchants will need to decide if they are going to allow their affiliates to bid on their trademark terms, which tend to convert very well. Benefits include having offers for different types of users on the SERPs, keeping competitors off the SERPs and keeping competitors’ affiliates off the SERPs. 77Blue’s David Lewis says that merchants need to evaluate what is right for their brand and find trusted partners who will work with them to protect their brands through trademark bidding.

Many merchants are so wary of affiliates bidding on their trademarks that they completely forbid it for all affiliates. Super-affiliate Colin McDougall recalls an instance when an affiliate manager admitted that McDougall’s bidding had made a huge difference for their sales but still would not make an exception to the company policy – it was the “if we let you do it, then we would have to let everybody do it” mind-set.

This mind-set might be changing, however. A 2007 Marketing Sherpa study reports that merchants have become more lenient with the use of their trademarks in keyword campaigns. In fact, 29 percent of merchants say they allow bidding on use of their trademarks and 36 percent say they place some limitations on trademark bids.

Companies no longer have an option about whether they should participate in online communications. These conversations are going to take place regardless if the company is involved or not. For this reason, reputation management has become one of the most talked-about topics among merchant and affiliates. Just this spring, Neo@Ogilvy, Ogilvy Group’s digital and direct media unit, acquired GSI Consulting Group, which specializes in brand reputation. TNS, a provider of strategic advertising intelligence, acquired Cymfony.

The good news is that there are tools to monitor buzz and ways to push negative conversations from the eyes of the masses. Creating a blog, optimizing a company’s website, buying PPC, issuing quality press releases, contributing to high-traffic forums and becoming a part of the conversation on user-generated content sites are all methods whereby an online reputation can be managed.

You’ve Got Content, Now What?

I find that many website owners are divided into two camps. One camp is very good at developing unique content and garnering tons of search engine traffic, but they have a hard time turning that traffic into dollars. The other camp is great at monetizing traffic, but they can never generate very much traffic. In both cases the individuals involved eventually become discouraged with their site’s lackluster performance and move on to something else.

This issue’s makeover recipient, HomeWA.com, is in the first camp. The site’s creator, Gabe Hoggarth, spent months working on HomeWA.com, a real estate information site focused on the state of Washington. He’s crafted articles full of quality information that both users and search engines love, but despite his content-building efforts, the site just isn’t making the kind of money he’d expected.

The bottom line is, how can we turn HomeWA.com’s existing traffic into a solid revenue stream? As you know, we have always chosen a home page to make over in this column. However, the HomeWA.com home page really wasn’t that bad. I don’t evaluate a home page or landing page based on how pretty the page looks. Instead I focus on the elements that will determine how effectively it communicates with users.

The home page should communicate three basic things:

What does the site offer? The site features a clear tagline, “Washington Real Estate Information,” which makes it clear what the site is about. Also, the simple navigation options and highlighted articles really drive that point home.

Why should I use this site as opposed to a competitor? HomeWA.com, like many affiliate sites, isn’t selling anything directly. Instead, it attracts a niche audience and hopes to make money when the readers sign up for or purchase the services and goods they link to. The only product that HomeWA.com directly provides is information, and Hoggarth has done a good job developing strong articles with appealing titles like “Top Home Buyer Turnoffs” which visitors seem to like. Having unique, high-demand information, while focusing in on a tight niche (Washington state home buyers and sellers) gives users a compelling reason to use this site.

How do I get what I want from this site? HomeWA.com has a simple navigational structure and provides several entry points on the home page that take users directly to the content they seek. This makes it easy for users to move on to additional pages from the home page.

Since the HomeWA.com home page answers all three of my main questions fairly effectively, I started to wonder if this really was the right site to make over. Then I remembered that despite the effective home page, Hoggarth still had a problem – his site was not generating boatloads of money.

It was obvious that a bigger-picture approach was needed. To help understand why the site isn’t generating the type of income it should, we need to look at its traffic. HomeWA.com gets most of its traffic from natural search. This means most users enter the site at the specific article that had the information they were looking for, not at the home page. We needed to start thinking about each article page as a landing page for the site, since that’s where most users got their first glimpse of what the site had to offer.

With this new perspective, I turned my sights to the article pages, and a quick review of these pages gave me all the answers I needed. First of all, there are no links to additional articles. Although the site offers loads of content, there is no simple way to get to additional content from an article page. Since related content is not visible, users are not encouraged to click through to other pages on the site. Next, there are no links to advertisers. That means there is currently no way to generate income from someone reading an article.

Without a little help, HomeWA.com will never reach its full potential. Here are three things we did to try to rectify the problems.

  • Of course, we gave the site a visual makeover. This isn’t the most important part of the makeover – but it certainly didn’t hurt. We chose to use a nature shot of Washington as the backdrop for the site. Having a customized design helps to give the site a more credible feeling. The photo could be changed to a more iconic image – the Seattle skyline for example – to reiterate the site’s focus on the state of Washington. A particular photo may be better, but that can be done after some rudimentary testing.
  • A fairly simple, but hugely beneficial change was adding a column next to each article. The column facilitates sections for additional content. This is where we can put related articles, resources, special features and some advertiser links. The purpose of the content in this area is twofold: to get users to go beyond this article and realize that there is a whole host of information on the site that they might be interested in, and it’s also a great spot to promote advertisers that will help make the site more profitable so Hoggarth can continue to develop valuable content.
  • Finally, we added some standard advertising units within the article and at the bottom of the additional column. These ad units give Hoggarth another way to monetize the site and if he doesn’t have advertisers to put in the spots, they could be used to promote additional site features. These changes will increase page views across the site and should help make HomeWA.com more profitable.

Would you like your website to receive a By Design Makeover? Send your name, company, contact information (phone, email, etc.), a brief description of your business and its goals, and, of course, your URL to bydesign@sostreassoc.com. Dont forget to include “Revenue’s By Design Makeover” in the subject line.

PEDRO SOSTRE is pioneering conversion design and its ability to turn online shoppers into online buyers. He serves as president of Sostre & Associates, an Internet consulting, design and development firm, which also promotes affiliate programs on its network of websites. Visit www.sostreassoc.com to learn more.

The Race to Embrace

Online marketers and merchants are quickly adopting new technologies such as blogging to help drive traffic and sell products.

Buzz Bruggeman, founder and CEO of ActiveWords, says his company has spent just $600 to advertise its ActiveWords software application. Yet thanks to his blog-centric marketing philosophy, ActiveWords was named the Third Best Software Product of the Year by Jupitermedia. The application has also been downloaded more than 100,000 times. Speaking in San Francisco at the Business Blog Summit in August, Bruggeman said more than 60 percent of those downloads come after people read the blog.

“It’s been a blessing,” Bruggeman says.

He’s not the only one getting good results. D.L. Byron, principal of Textura Design, says that his blog gets more than 1.5 million page views per month and the company has sold more than 50,000 of its Clip-n-Seal gadget as a result of the company’s blogging efforts. They have also expanded their markets to Ireland and the Caribbean, as well as into new industrial market spaces – such as getting orders from NASA – based on people finding them via the blog.

Blog On

New research is coming out rapidly, and figures are changing quickly. And while the exact numbers on the size of the market vary widely, most agree that the blogosphere is growing by leaps and bounds.

Perseus Development Corp. randomly surveyed 10,000 blogs on 20 blog-hosting services and found that as of June 2005 there were 31.6 million hosted blogs created on services like Blogger, LiveJournal, Xanga and MSN Spaces. Ten million were created in the first quarter of 2005. By the end of 2005, Perseus expects there will be 53.4 million blogs.

In August, some research reports put the number of blogs at more than 70 million worldwide.

According to a study conducted by Pew Internet & American Life Project in early 2005, 6 percent of the entire U.S. adult population has created a blog.

Technorati.com estimates there are approximately 900,000 blog posts every day, or 10.4 posts per second. The blogosphere continues to double about every five and a half months. A new blog is created about every second; there are over 80,000 created daily. About 55 percent of all blogs are active, and close to 13 percent of all blogs are updated at least weekly.

So there is no doubt that blogs are being created, but who is reading them?

According to two studies by Pew, 16 percent of U.S. adults, or 32 million, are blog readers.

A June report from market researcher comScore, sponsored by SixApart and Gawker Media, states that 50 million Americans, or 30 percent of all American Internet users, visited a blog in the first quarter of 2005. Traffic to blogs increased by 45 percent from the first quarter of 2004, according to the study.

The average blog reader viewed 77 percent more pages (16,000) than the average Internet user who doesn’t read blogs (9,000 pages) for the first quarter of 2005. The report also found that blog readers average 23 hours online per week, compared with the average Web user’s 13 hours.

The comScore study also found that blog readers are 11 percent more likely than the average Internet user to have incomes of or greater than $75,000 per year. Similarly blog readers are 11 percent more likely to visit the Web over broadband either at home or the office.

The good news for online marketers is that blog readers tend to make more online purchases. In the first quarter of 2005, less than 40 percent of the total Internet population made online purchases. By contrast 51 percent of blog readers shopped online. Blog readers also spent 6 percent more than the average Internet user, the comScore study reports.

Mind Your Business

So it’s no surprise that businesses are trying to leverage this phenomenon. For merchants and online marketers, using the Internet journal format of blogs allows businesses to talk directly to customers, generate product buzz and encourage consumer loyalty, while bypassing traditional media outlets such as newspapers and magazines.

At press time there were no exact figures on how many companies, executives and employees were blogging. Pete Blackshaw, chief marketing officer for Intelliseek, estimates that there are more than 150 official corporate blogs, with hundreds more in the works.

Big companies are getting into the act. General Motors Corp. Vice Chairman Bob Lutz has a blog (FastLane.GMBlogs.com) that gets between 150,000 and 200,000 unique visits a month. So does Sun Microsystems President Jonathan Schwartz’s (Blogs.sun.com/jonathan), who often uses his blog to take on Sun competitors and market analysts. His blog gets about 300,000 visits a month.

Both Lutz and Schwartz have written several blog entries that raised eyebrows, but corporate blogs don’t have to be controversial to attract attention. Stonyfield Farm, a New Hampshire company that sells organic yogurt and ice cream, has five blogs (www.Stonyfield.com/weblog). Aircraft manufacturer Boeing also uses a blog to promote its brand. Randy Baseler, vice president of marketing for Boeing Commercial Airplanes, made his first entry in Randy’s Journal (www.Boeing.com/ randy) the day before rival Airbus unveiled its A380 super jumbo jet.

Google has launched a blog explaining the ins and outs of its AdSense program (adsense.BlogSpot.com) to publishers. The effort to make AdSense’s workings more transparent offers optimization tips and features descriptions to prospective and existing publishers in the AdSense network and is updated three times a week by a variety of “engineers, product managers, product marketing managers, and operations staff” on the AdSense team. Google’s AdWords program has had its own blog since May.

For online marketers the idea is to be part of the conversation in your space and to get noticed, according to Dave Taylor, author of The Complete Idiot’s Guide to Growing Your Business with Google and well-known business blogger at www.Intuitive.com/blog.

Taylor suggests online marketers offer something of value to visitors. “Communicate with people to show them you are an expert in your area and give them a reason to buy from you,” he says. “So if you are an affiliate that sell laptops, write laptop reviews and blog about that. Include how-to’s or product guides. Blog about maintenance issues. You will give people a reason to trust you. It builds credibility.”

One often-cited story of a blog propelling someone to success is Thomas Mahon, a Savile Row tailor with a blog at www.EnglishCut.com, in which he discusses in great detail the specifics of creating expensive, custom suits – everything from buttons to selecting the right wool. Hugh Macleod, a top-10 blogger, wrote about his pal Mahon, who at the time was having trouble just paying his rent. That gave Mahon’s blog a huge traffic spike and suddenly his sales started to climb. He went from making two suits per month (at $4,000 each) to making 34 suits per month.

Mahon has also been able to expand his market beyond London. In fact, now when Mahon wants to travel to a specific location, such as New York, Los Angeles or Hong Kong, he simply lets his blog readers know and once he’s gotten orders for at least four custom suits he books his travel – a far cry from scraping by to pay his rent.

While these types of success stories are not uncommon, there is a limit to how many times lightning can strike.

“Blogs will help some affiliates become more important,” says Shel Israel, coauthor (with Robert Scoble) of the forthcoming book Naked Conversations: How Blogs are Changing the Way Businesses Talk with Customers. “A few will increase their sales by orders of magnitude. Then they will be imitated to death and, suddenly, no one will be unique anymore. It’s very important to be first with a unique story to tell. It becomes much harder to be second or third.”

Say No to Faux

Unique is good. But Taylor advises against getting too personal in a blog related to your business. “This is a business communications tool. You need to stay on topic. Talk about movies and personal things in your personal blog. Some bloggers think it should all be intermingled. I don’t.

“What if I have strong religious beliefs? That might conflict with the views and opinions of some of my readers and then I would lose business. That’s bad business. Use a blog to build credibility, not the cult of personality.”

Most agree that showing authority and knowledge about a topic as well as passion help make a good blogger.

“Personality is a word that makes me flinch,” says Israel. “You want to be professional and authoritative, but not boring. Boring is death in the blogosphere.”

Taylor says it’s the same principle that should be applied to traditional advertising – it’s about the product, not the personality. “That was the problem with the Dell ad campaign: ‘Dude, you’re getting a Dell.’ It was counterproductive because you want people to think Dell, not dude.” That issue proved to be particularly problematic for Dell when its spokesman for that campaign was arrested in New York and charged with possession of marijuana.

Some big companies are employing corporate bloggers. Microsoft hired Robert Scoble, whose blog Scobilizer is one of the most popular. Though for most affiliates and online marketers it might not be financially feasible to hire a blogger.

But there’s nothing that will destroy your credibility quicker than creating a fake blog. Most industry watchers and blog experts agree consumers can spot a fake blog immediately. They pick up on the insincerity instantly. Fake blogs simply stir up the ire of blog readers by disguising the fact that they are really ad campaigns. McDonald’s made this misstep when the company posted a new blog in advance of a Super Bowl campaign about a Lincoln-shaped french fry.

Steve Rubel, vice president of client services at CooperKatz & Co., a New York public relations firm, who also had a blog (www.MicroPersuasion.com) suggests avoiding fake blogs or just regurgitating press releases.

“It’s about finding the intersection of your passion and what people care about,” Rubel says. “Hopefully, they overlap.”

Spreading the Word

If they do, you’ll likely get other bloggers and consumers talking about you or blogging about you. That buzz can help. If other bloggers are linking to your business, it increases your ranking on Google. That helps people find you.

Clip-n-Seal’s Byron says, “Sales come from search, not ads.”

But Bruggeman adds, “Blogs are not about eyeballs. It’s about the conversation.”

“Word of mouth is very important,” Taylor says. “It’s important to know how people are getting to you, not just how people are searching for you.”

But word of mouth can be a double-edged sword. Many fear the consequences of letting consumers freely express their opinions. Those with the fear aren’t sure about allowing readers to post comment in their blogs.

However, some bloggers allow comment, even negative ones, as a way to add a level of credibility. It’s an individual choice. Israel says he uses what he calls the Living Room Policy.

On his blog (www.ItSeemsToMe.com) Israel writes, “If you come into my home and you are rude to me or my guests, I will ask you to be more polite. If you persist in being rude, I will throw you out of my home and will not allow you back into the house. If you begin with the clear intent of being offensive, you will be tossed out and banned without warning. I also take a dim view of anonymous comments. I am suspicious of people who take a position and will not demonstrate the courage to reveal who they are. I often just dump out those comments whenever I feel like it. This does not mean that I don’t welcome disagreement. But if you’re going to come onto this site with a spray paint can in your hand, you’re out of here.”

While you can control whether to allow others to comment on your blog, you have no control over what others say about you or your company on their blogs.

For example: Jeff Jarvis, the creator of Entertainment Weekly magazine and a high-profile blogger (www.BuzzMachine.com), took Dell Computer to task for the company’s alleged refusal to fix or replace Jarvis’ broken computer.

BuzzMachine frequently receives more than 5,000 visitors a day, and an open letter that Jarvis wrote to top Dell executives was the most linked-to post on the blogosphere for that day, according to Intelliseek’s BlogPulse. The post was also either linked to or discussed by at least .01 percent of all blog posts written that day, according to BlogPulse.

Back before the Net, Jarvis might have been just another dissatisfied customer. But today his widely circulated criticism triggered dozens of other bloggers and hundreds of others to publicly complain about service they’ve received from Dell’s technical support.

That problem is not unique to Dell. Many companies are not prepared to handle how their customers can share their experiences virally, says Intelliseek’s Blackshaw.

In the end, complaints that appear in blogs can do as much damage as a negative advertising campaign. Prompted by the incident with Jarvis, Dell’s public relations department began forwarding complaints with personally identifiable information to the customer service department so that representatives could contact dissatisfied consumers directly.

Mark Cuban, the owner of the Dallas Mavericks basketball team and an investor in IceRocket, wrote in his August blog (www.BlogMaverick.com) that blogs have changed customer complaints.

“It used to be an old customer service mantra that ‘one upset customer can tell 20 people about how poorly your company performed, and those 20 people could tell 20 more, and your business could really suffer.’ Keep all your customers happy, and you won’t have to worry,” Cuban says.

“Those numbers are miniscule compared to today. In today’s world, one upset customer can write in their blog about how upset they are about your product or service and it could be linked to by any number of other blogs, which in turn are linked to by any number of blogs, which is in turn picked up by a TV news show. In 24 hours or less, tens to hundreds of thousands, if not millions, of people have heard the complaint, and your business and brand are at risk.”

Searching for Blogs

But before you can handle a potentially problematic situation, you have to know what is being said about you or your company and where it’s being said. It’s a good idea to subscribe to blogs with RSS (really simple syndication) feeds as well as use RSS to send out your feeds. As of August, just 11 percent of blog readers, or about 2 percent of U.S. Web users, were using RSS tools to manage blog feeds, according to a report released by Nielsen NetRatings.

Nearly 5 percent of blog readers use feed aggregation software, and more than 6 percent use a feed aggregating Web site to monitor RSS feeds from blogs, according to a Nielsen NetRatings June survey of 1,000 online users who had visited blog sites.

The report also found that 66 percent of blog readers either did not understand RSS or didn’t know it existed, according to the report, which is titled, “Understanding the Blogosphere.”

Another way to monitor who is saying what about your business is to use niche search engines like Feedster, IceRocket (to be renamed www.BlogScour.com), PubSub and Technorati. These search engines are already monitoring and indexing millions of blogs so they can be searched. Technorati tracks more than 15 million blogs, and that number is growing every week. In July IceRocket claimed to track 18 million blogs, up from about 15 million four months before.

Many speculate that paid search and contextual advertising will progress into the context of customer-created dialogue. Search will be less about acquiring customers and more of a tool to insert brands into conversations between individual people, markets and groups of like-minded folks.

So monitoring, analyzing and archiving that conversation is becoming valuable. And like most other areas of the Net, where there is great opportunity there is also the potential for fraud.

Another obstacle in the efforts to organize and search blogs is that some companies appear to be using computer programs to create spam blogs or “splogs.” The sole purpose of these splogs is for posting links to their websites. The problem for blog search engines is that when users query certain terms the served results can end up being links to these splogs, instead of to the consumer-generated content the searchers were looking for.

Cuban says these blog search engines are being spammed in monstrous proportions in the blogosphere because it’s so easy to do. He writes, “Blogs are coming at us left and right. We are killing off thousands a day, but they keep on coming. Like Zombies.”

He puts some of the blame on Google, which owns Blogger.com. The service enables users to set up free blogs. However, some say the onus is on search engines to come up with better algorithms, not on the blogging software to stop splogs.

Making Money

There are lots of blogs, but are online marketers making money?

Weblogs Inc. is a network of 80 blogs. It is generating a steady stream of revenue from network ads and direct ads. The network ads are automatically served by Google and Tribal Fusion, and direct ads are the result of contracts with such advertisers as Equifax, Pacific Poker, Palm, Subaru and Volvo. According to founder Jason Calacanis, the majority of the company’s revenues come from direct ads, which currently command a CPM rate of between $4 and $12, whereas network ads generate CPM between $1 and $4.

Weblogs Inc. generates more than $1,000 per day from Google AdSense alone and has recently surged as high as $2,000. More than half of Weblogs’ advertisers end up buying space on more than one of the network’s blogs, says Calacanis, but to interest a direct advertiser, a blog’s traffic must exceed 1 million page views per month.

John Battelle, co-founding editor of Wired magazine and founder of The Industry Standard, has started Federated Media, which will serve as an ad and marketing network for high-quality blogs. FM will function much like a book imprint or record label, aggregating like-minded blogs, (about 10 to 20 per category to start). The categories include technology, media, pop culture, entertainment/gaming and sports segments.

BlogAds has a network of 750 blogs. Advertisers have run the gamut from carmaker Audi to political and other special interest groups. BlogAds expects to have 2,400 ads on blogs for the month of August, up from 700 a year ago. The average blogger makes $50 a month from displaying BlogAds, but some bring in more than $5,000 monthly, CEO Henry Copeland says.

Advertisers can find the separate groupings, along with traffic numbers and prices, and do a partial or full network buy. The theory behind the new networks is that bloggers can group themselves together much better than a top-down organization – because of the large volume of blogs – and advertisers get to select blogs by category, and on top of it reach millions who don’t read the top blogs but do read myriad others.

And while blogs will never replace other forms of content on the Web, they do have a distinct role to play, according to Jon Gibs, senior research manager at Nielsen NetRatings. “While these sites will likely never have the traffic of some of the larger ad networks, blogs do have a specific role to play in the online advertising mix,” Gibs said in the report.

“Advertisers should look to blogs as a way to organically grow trends by leveraging the role of bloggers as peer influencers. By associating their message with the blog’s image, advertisers can legitimize new trends they are hoping to promote to a niche audience.”

It’s a Commitment

Israel says that most bloggers like to take the position that every business should blog, “but that’s just not true.”

“There is a tremendous time commitment. It’s not just about doing your own blog, but about seeing what others are saying and being part of the bigger conversation. If you don’t have the time or the inclination, then you shouldn’t be a blogger,” he says.

Rubel say it’s a lot of effort but “you get what you put into it.”

Still, even if you don’t have the resources or commitment for blogging, you can’t just ignore it.

“You can no longer ignore the blogosphere,” Israel says. “It’s here and it’s where the fastest-growing news is taking place. Its influence is enormous, and it’s continuing to grow. And it’s not going away. It’s only going to get bigger.”

Spying Your Way to Profits

Don’t start thinking James Bond thoughts. Instead, think of spying on your competitors and yourself. Illegal spying? Perish the thought. I’m talking about legal spying. Follow my reasoning here.

A 10-year old boy walks into a hardware store. He asks the person in charge if he might make a local call on the telephone. The manager hands him the phone. The boy dials the number and says, “Hi! I’m calling because I want you to have the most beautiful yard on your street.”

“We already have a beautiful yard,” comes the reply.

“I’m really calling to offer you the services of the best yard boy in town.”

“We think we already have the best yard boy.”

“Well, that’s great and thank you for your time.”

The store manager says to the young boy, “With an attitude like yours, you’re going to go far in this world. With that attitude, you’ll have a job as a yard boy in no time at all!”

“Oh,” says the kid, “I already have a job as a yard boy. I’m the yard boy for the people I just called. I was just checking up on myself.”

As the kid knows, a mandatory weapon in a guerrilla’s arsenal is a clear picture of reality.

Reality? What’s that? It’s the difference between the way your company is conducting business compared to the way your competitors are conducting their business.

The whole idea is to do absolutely everything better than your competitors.

But how can you accomplish that? Answer: by spying.

Guerrillas spy on their competitors, their industry and especially themselves. Business information is more plentiful than ever, and your competitors aren’t really dummies. They’re getting smarter every day, and the only way you’re going to know how you measure up to them is by actively engaging in regular spying. It’s a habit with guerrilla affiliates.

Contact a competitive company and request some information. If your voice is too well known by those who would deign to compete with you, have a friend make the call. See how you are treated on the phone. See how your information request is processed and how long it takes. See if there is any follow-up and how good it is.

Then, call your own company and request the same information. Again, since they probably already know the sound of your voice, engage a friend to help you spy. Are you treated as well as your competitors treated you? Is your information request processed as well and as fast? Is your follow-up better than your competitor’s?

If your competitors are doing anything better than you, make the changes so that you are doing everything better than they are. Because many sports are games of inches, being an affiliate is a game of details.

When you spy, direct your efforts at the best in your industry, your community, your chunk of the Internet. Seek out competitors in your own field, in your yellow pages, on your planet. If you ever find one who operates a business better than you do, feel good about it because you can learn from it, then make the necessary improvements.

Spying is both inexpensive and informative. It should be practiced regularly, at least four times a year, if you’re serious about being a wealthy guerrilla. Guerrillas know in their bones that the truth is a valuable ally. Truthfinding is a painful job, especially when you learn that you are falling behind, but the opportunities to transform that knowledge into profits make up for the pain.

Here are five ways you can snazz up your snooping:

1. Order something. Buy something from your own company. Then, buy something from some of your competitors. It always helps you to own the product or use the service of your competitors, because owning is the essence of down-and-dirty spying and enables you to spot your own deficiencies as well as your own advantages. Do it by phone or mail or in person. Keep an eagle eye for the smoothness or rough edges in the entire process. There will be more differences than you think. Note especially when they do their follow-up. If your competition is a public company, buy a share of stock so that you can spy by means of their annual report and shareholder meeting.

2. Visit your competitors. You or your trusted co-spy should visit your place of business as a customer might, and then visit the premises of your competitors. Note the little details that win or lose prospects. Keep in mind that all of them are probably nuclear-powered details.

3. Phone your competitors. Focus on the personality and attitude of the person who answers the phone. If it’s friendlier than the person who answers your phone, teach your phone answerer how to do it.

4. Request something. Maybe it will be a price list, a video or a brochure. Do you handle requests as professionally as your competition? If you’re a guerrilla, you handle them with aplomb.

5. Compare everything. Look through the eyes of your prospects and compare your own and your competitors’ service, pricing, packaging, people, selection, follow-up, signs, quality, delivery and attitude. Guerrillas know they compete in many arenas and must be the superior entry in all of them and at all times. Only spying will give you honest feedback on how you’re doing. The opposite of a spy is an ostrich.

I hate to be the one to tell you this, but be prepared to face up to some awful truths about your business. Yes, I know there’s a tiny chance that you’re doing everything better than your competitors, but if you learn from your espionage, there’s a great chance that will happen. Guerrilla spies don’t have to cheat, don’t have to peek, don’t have to engage in sabotage. All they have to do is observe keenly, keep their minds open and be committed to improving.

JAY CONRAD LEVINSON is the author of the Guerrilla Marketing series of books, the most popular marketing series in history with 14 million sold in 39 languages. He also publishes the Web site GuerrillaMarketingAssociation.com.