What’s Wrong with Internet Marketing?

Byjoel

There’s a very disturbing trend taking place in the Internet marketing world. I am specifically referring to the Infoproduct “make money online” niche.

I’ve had one foot in this market for the past few years, but I am increasingly dismayed by what I see happening.

I say “one foot” because my products and services are very diverse and most are not in the IM niche.

However, it’s time someone came forward to draw a line in the sand. Since I don’t see my peers doing it, I am willing to take the risk. It’s too important to ignore.

I have covered this topic before on my blog in a category titled “The Dark Side of Internet Marketing“. You can consider this an addendum to my earlier writings.

There is nothing wrong with learning how to leverage your passion to make money online. However, it is essential that people understand there is no get rich quick method! There are plenty of strategies that are marketed as “secrets”. But if people had REAL “secrets” they wouldn’t be selling products promising riches. They would be keeping their secrets a secret and building wealth quietly.

When I teach online revenue strategies, the last thing I recommend is entering the make money online niche. That is where there is the LEAST opportunity! Yet so many Newbie marketers treat it as though it is the goose that laid the golden egg.

That is only true if you have come up with a groundbreaking strategy that can be easily duplicated. Such was the case when I released my ebooks on AdSense as far back as 2005.

Today, it seems like many people are coming up with products specifically designed for the make money niche without actually having success in that niche.

They then present their methodology as a turn-key push-button system that will be bringing in truckloads of cash in nothing flat. They fail to tell people that it will involve WORK.

And to make matters worse, there seems to be an infatuation with a $1997 price point for new courses and systems.

When the economy took such a turn for the worse, I lowered my prices. I give away many of my ebooks for free and when I sell from the platform it is rare for me to charge a price point greater than $997. Yes, I charge more for workshops and one-on-one coaching, but there’s a lot more value in working directly with someone.

It seems like the only reason marketers are charging nearly $2000 is so they can pay $1000 commissions to their affiliates who promote the products.

It’s true that I know many of the big names that you see participating in these launches. And I think many of them are decent people.

But I will not participate in those launches for a few reasons.

1) I think $2000 is too much for the majority of what is being offered. Whether the product promotes traffic generation, social media, mobile or whatever else the flavor of the day is, once you get past the hype you discover that much is just rehashed content packaged a new way. Does this really help people?

2) I grow weary of the bonus silliness. Marketers encourage their affiliates to create a bonus which they will provide to those who end up buying the package through their link. It’s alright if affiliates create a brand new bonus designed to accompany the product they are promoting. But more often the bonuses offered are the very same products that they charged $2000 for a year or so earlier! I think its wrong to devalue your product in that way. And how should the customer who paid full price for that product feel? Also, if I promote a product in pre-launch my affiliate commission can be taken away when another affiliate gives away the farm with their bonus. The whole thing leaves a sour taste in my stomach.

3) It’s bad for the customer. There’s nothing wrong with Robert Cialdini’s psychology of influencing and persuading others. But I’m afraid the launch formula is being misused to manipulate people into buying. When you cross the line from persuasion to manipulation you have ceased to bring value to the customer. Now you are just seeking your own good.

I remember hearing one marketer tell me that his job from the stage was to suck as much money out of room as possible.

I find that concept disgusting.

I enjoy making sales from the stage as much as the next guy, but I don’t want anyone buying unless they both know what they are getting into and have the means to make the investment. That’s another reason I keep my price point low.

It’s also the reason I have not received professional speaker’s training. I do not want to learn new techniques to persuade. I want to be authentic and deliver value first and foremost. If people want to buy what I have to offer, that’s great.

Because of that, I will always sell less product than I could and earn less money.

Because I won’t play the backscratching product launch game, I turn away from the profits I could be earning.

And because I am willing to stand up for what is right, I risk damaging relationships with other marketers.

But honestly, if there are those who are offended by this post than I probably shouldn’t be concerned about maintaining that relationship anyhow.

Over the past thirty days I have been approached to promote and/or endorse no fewer than FIVE $2000 products.

I have rejected every one of them. My unwillingness to promote these products has probably cost me somewhere in the ballpark of $50,000-$100,000 in commissions.

I would rather sacrifice those commissions than sell myself out for more money. That’s precisely what I believe is happening in the Internet marketing world.

Here is what I would ask of my peers…

1) Create original products and services that go above and beyond what is promised. Create something new instead of camping out in the same territory where you have been your entire career. People need real solutions, not another course on making money online from someone who has only made money online selling courses on how to make money online.

2) Price your products more in line with the state of our economy. People are hurting right now. Give them a break.

3) Stop encouraging and/or allowing bonuses from affiliates. Let your product stand on its own strength. It’s one thing to give away free bonuses with an ebook or piece of software. It’s another to set affiliates against one another in a race for commissions. It devalues everyone’s products.

In the immortal words of Forest Gump… that’s all I have to say about that.

Share
Tweet
Share
0 Shares

Similar Posts

180 Comments

  1. Hi Joel,
    I think your post is spot on. These things need to be said and I am glad someone at your level is saying them.
    However, aren’t you also part of Tony Robbins business coaching program that costs like $30,000 for the seminar – seems like he is also charging more than he needs to…
    Another marketer I have found is Curtis Andrew. After joining up with him, I have pretty much deleted all my other crap. He doesn’t send you lame offer after lame offer like most of these other guys do. He’s a true leader. He has a world class training program at http://internetincomeacademy.com
    Cheers!

  3. Joel,
    Let me first say I like you. You are the 1st internet marketer I liked but haven’t met.Your presence in those early Adsesne videos shines through.
    I fully understand your disappointment with the state of the market place, however I completely disagree with a vast amount of point in your post.
    The market is the way it is because that is what the “public” want. If they did not want it then there would not be any of it. It is basic demand versus supply. Do I agree it is right? No, but that is life. 50,000 people die EVERY day in Africa from preventable diseases but does that stop anyone going about their day?
    Very few people are lucky enough to have the knowledge or expertise or even wisdom to create something 100% new let alone be able to bring it to the market place.
    If I spend 6 months or a year of my life on something that is not new; researching,learning, testing, researching more and testing till I can not test any more it does not mean it is worthless. What I am selling is my knowledge, time, understanding, avoiding the mistakes and PROVEN results all condensed in to a product.
    How much is that worth?
    Well for a start time is priceless!
    How much would the “average” person waste knowing the right places to look,doing all the steps, making the mistakes and the all important researching? From my experiences “Joel Bloggs” would take 3 years to construct and implement what I have learned and spend a lot more money, so it is my prerogative to charge what the market will pay.
    It is all time versus money.If you want to save 3 years being in the wilderness it is going to cost you $1997!
    SIMPLE.
    At the end of the day people buy products all the time no matter how much they cost then do nothing with them. On average only 10% of people will use the products they buy. The rest do not even bother with returning the product for a refund! Why defend them? They are showing little or no respect to the effort someone has put in.
    Joel, let us get real for a moment. I would love to create a million dollar product and give it away for FREE and it is actually one of my goals. However if I create this wonderful free product and go to my list of JVs saying “Hey guys, got this million dollar product for you, it’s totally excellent! Oh and it is for FREE!”
    They are hardly going to be jumping for joy. The would be giving me their entire list which they have worked hard for and with nothing in return. Result: No one gets the product.
    Now use the same situation but this time the JVs get $1,000. Remember this product is worth a million dollars so asking $1997 is more then a bargain. Result: You sell 10,000 units which in feel good factor terms means you have created 100 millionaires! (10% of the 10,000 people actually use the product).
    If I was in your position Joel and had the opportunity to make a “ballpark (figure) of $50,000-$100,000 in commissions” I would take it rather then complaining at the state of the market. I would use that money to help people who need it, like the people dying in Africa rather than spend my energy and time writing a blog in an attempt to “save” people from buying $1997 products that are not up to scratch. ( I would like to note I am 100% sure Joel Comm already contributes greatly to charity and a wealth of good causes.)
    Regards,
    Jamus McKenna

  5. Excellent post! I suppose someone will soon title a product “How to Make Money-Telling People How to Make Money.”
    It’s so obvious that many of these marketers have teamed together.
    Joel, I am grateful to you for your book on making money with Adsense. It literally has impacted my income in a great way.

  6. Joel, RESPECT!!!
    I do however believe the tables are turning though. See how these $2,000 sites are closed and then suddenly this and that person is doing a webinar for the said same product. People might be slow to catch on, but they are catching on. That said, I purchased two big ticket items this year and have to say I’m proud to be members of their community. In fact, I’ll shout it out, Andy Jenkins (Video Boss) and Mike Koenigs (Main Street Marketing Mike), you ROCK!

  7. Joel – Great post. I especially appreciate the personal information you’ve included (about being approached to participate in 5 product launches) — it gives some real traction to your public position.
    Ryan
    P.S. I found this post through Michel Fortin’s post “A Disturbing Trend in Internet Marketing.”

  8. Amen.
    I’m so glad that more and more people are coming out and speaking about this.
    Having learnt about internet marketing through Ed Dale’s free course, the 30 Day Challenge, I’ve been shocked and somewhat bewildered by how much people seem to be prepared to pay for what comes across as snake oil.
    I say unsub from the lot and have a quieter, more focused time online.

  9. Boo to the bonus wars.
    Boo to overpriced crap.
    Boo to IM products where the salespage doesn’t even tell you anything about what the product is actually about- just emotive promises that it will make you an overnight millionaire.
    Honesty and Integrity rule.

  10. I am amused by the comment:
    “I remember hearing one marketer tell me that his job from the stage was to suck as much money out of room as possible. I find that concept disgusting.”
    I would be interested to hear the context of this sentence. How was it said?, what dialogue surrounded it? The job of a doctor might be to “make someone better” yet there is so much more to it than that. A marketer’s job (I am afraid to say) is often primarily to make money. In your case, you are not a marketer as much as an entrepreneur. You have a brand, a business, integrity etc.
    A marketer working for someone else’s business or brand however is simply trying to use their time and skills to leverage sales from whatever product or material is available to them within the boundary in which they are allowed to work.
    In the case of the person stating the quote, in order to get $$ from the people in the room, you have to give a lot of great content away for free, you have to engage with audience, add value to consumers, listen to customers and this adds value to them which in turn makes them want to purchase your products which in turn support you.
    In some ways this comment placed in the right context is far more honest and powerful than someone standing up and pretending to be your friend or that they care about your life and that somehow they are not there to ‘make money out of the room’ (I am surprised they used the work ‘suck’ which has negative connotations instead of ‘make’).
    If marketers really cared about the people they market to they would be educating schools, visiting old people in retirement homes and simply being a good friend to people in need.
    Anyway a much needed article, just interested in more context about the quote.
    Richo

  12. This is so very true. I don’t have a problem with the $1997 price point but if your gonna sell for that much it should be worth that much.
    I’ve purchased courses for $297 that made me a lot more money then most of these $2000 courses.
    MassControl was worth $2000 and so was Product Launch Formula. Now List Control was only worth $497 at most. Outsource Force was also worth no more then $497.
    But for most people its impossible to charge less then what they think they can get.
    If you were selling apples and the apples are only worth a dollar but you know people are willing to pay $10. would you still only charge $1?

  13. Hi joel, I agree totally that there is a lot of overpriced nonsense out there in the realm of internet marketing & on my own site i have only tried to include products that people will find usefull, Plus at the low price of £7 for most of my products i feel i am offering value for money.
    I got to see you at the o2 arena in london after having been invited by Andrew Reynolds who’s buisness model i am currently studying and currently testing publications to place my ads but as of yet i haven’t seemed to find the right one, even my news of the world ad didn’t seem to raise any interest and that reached over 8 million copies sold, ????
    What i have found myself doing though, & you are my inspiration on this, is i am not promoting so much internet marketing products but am focusing on promoting the making & selling of iphone apps, one particular product by steve jobs who i beleive you know, (free the apps) (thinking drone) as well as the app development guide they are giving away the source code for a live application plus a non disclosure agreement for people to use when they approach a programmer.
    This product represents good value for money in todays finacial climate & is priced at an unbelievable figure you’d be crazy not to take the offer.
    Thanks for the insight into the industry joel, you are truly unique amongst internet marketers & i hope to see you again one day. All the best!!

  14. You are right. These high priced products are in a way useless for the average guy, it may be good for the person who has a name and money to throw around. It is very difficult to make a single dollar online and you have to pick a niche that is not crowded.

  15. There is a furious battle raging. It is fueled by the need for greed. And, to the victor go the spoils. What’s really at stake within this present day Internet Marketing Mania? Simply… trillions of dollars, and billions of lives.
    Within five years there will be around two billion human beings, online and interacting.
    We are nearly at 1.5 billion today! That’s a huge potential market just waiting to be grabbed! It’s an absolute opportunistic feeding frenzy; a crusade for POWER. Believe me when I say, that ‘those in the know’, have already been working very hard, behind the scenes, recruiting every Internet newbie soul that is willing to sell their soul, for the God Almighty Dollar!
    Thousands of mindless minions are being unsuspectingly recruited even as you read these words. Millions of subscriber lists have already been accumulated. The War has begun-you were just too distracted to see it happening. Or, to see it coming straight for you!
    They know how to get you to do things. They know how to make you decide to go with them. They know how to create a dream for you to share and believe in. They know how to give you everything you have ever wanted. You’re getting sleepier and sleepier, listen to my words, listen only to my words….
    By first ‘hyping’ almost every benefit or feature of a product or service, the skilled Internet marketeer creates an intended desire. With compelling emotional copy that uses already proven to work hypnotic'(suggestive) key words and phrases, they then dive in and go for your jugular, and close the sale.
    How many ways can someone, a deceptively devious marketeer for example, trigger a reaction within you to ‘buy’? Well, is there a limit to your imagination?
    What exactly do I mean by ‘hyping’? Does it imply or connote misrepresentation? It can, and usually does; even if in some small way. Is it exaggerating? Of course it is! Do you get what they claim? In most cases…NO!
    Yes, yes, there are many honest, ethical and considerate marketers out there, but the bottom line is still and will always be the bottom line…money. I don’t know if you’ve noticed lately, but MONEY, and the pursuit of it, has a funny way of changing people.
    And, strangely enough, if you deliberately bypass an individuals’ innate desires and needs, and trigger instead an emotional reaction, what you get, is an emotionally responsive sale. This elevated emotional state usually does not last. The euphoria soon wears off, and the unsuspecting customer drifts back to earth, uncomfortably aware of their newly purchased possession.
    Despite ‘buyer’s remorse’, most refunds and returns through-out the industry are well below 10%. Unfortunately, most people that purchase these products instead of doing something with their new and unexpected toy, they let it sit, and sit, idly by, and then, do something else, entirely different.
    In other words, they didn’t use it! They didn’t benefit from it, regardless of its many ‘hyped’ and emotionally charged features. The mood is gone. They can now become easily distracted, once again, by entirely something else, which just ‘happens’ to trigger an emotional response within them.
    Do you see where I am going with this? Who do we blame, the unsuspecting consumer, you, innocently searching for a solution to your problem or condition? Or, the diabolically devious marketeer, armed to the teeth with an arsenal of tricks, techniques, and strategies, that have been designed to wear you down, to deliberately by-pass your true innate desires; and then, to trigger an automatic urge within you, an irresistibly compelling impulse…to buy, buy, buy?
    It’s not easy to say no! Especially, when they’ve whipped you up to a frenzy, wanting this product so bad that you can taste it. They even know the right colors to use that soothe or excite, while eliciting a greater, a much greater response rate from you. They also know the exact words, ‘hypnotic’ key words and phrases, equally designed and proven effective, to get you to want, to only want, what they have to offer. Subliminally seductive, and completely under your radar!
    Everything you see, read, and hear on that landing page or website, has all been put together because they work; they get you into a fixed state, where you are receptive and ready to be told what to do next. They’ve even named it, a “call to action”. This is where you are not asked, but told, to buy their product, and buy it NOW-and usually, before it’s too late! At this point, you automatically do what you’re told.
    Congratulations, you’re now a proud new owner of….
    With sleight of hand precision they deal you a card from the bottom of the deck. You think you have a chance, you hope you have a chance…for more money, and a better life. But, the deck is stacked, and the deal is dirty. How can you really ever hope to win?
    The answer is truly simple. Don’t play into their game! Don’t play. Hey, but Life is a Game you say, and you need to play something. Well then, I say, play something else instead.
    Play something you can truthfully and willingly win at. Without being artificially and emotionally charged into buying something you really don’t need or want; or will ever likely use and benefit from.
    But, before you can have this truth, you must first recognize and realize what exactly is wrong with this kind of mindless marketing control, and how it just ends up betraying you, and everyone else that’s fallen prey to it instead….
    If you pay attention, you can truly find out: Who’s really in control? Who wants to gain control, and most importantly, how you can protect yourself and your family from this Internet Marketing Mayhem.
    Unconsciously, you are being controlled, mindlessly manipulated, and played like a Stradivarius. You owe it to yourself to take a stand. You owe it to yourself to see other ways of getting what you want without getting hurt yourself; and, or hurting other people in the process.
    Unscrupulous and deceptively devious marketing practices and practitioners do harm the individual, as well as society. They must be recognized for who they are, and stopped!
    Trust your instincts; find out the truth for yourself. Don’t continue to be distracted and deluged with promises, offers, and riches beyond your grasp. Come back to reality. Learn to see life as it is!

  16. Some amazing comments throughout. There are even some pointers to follow up on too.
    Got to say that we seem to be going round in circles with all these IM fantasists. I’m also sick and tired of reading the same old rubbish coming into my mail box. There are people who are selling and hyping infinitum when you try and pin them down it is all so vague couched in empty long-winded words. All they seem to be beating the drum about is the oodles of riches that they can make at other people’s expense.

  18. I think that the thing that has been lost here is integrity. You touch on that in your Upsell Insanity post that I just finished reading as well.
    It would be nice for the guys and gals that work hard to produce their own products or promote quality products to get rewarded. It is admirable that you turned down opportunities that would have lined your pockets in order to stand up for your principals.
    Stay the course Joel, and be an inspiration for those of us who are following behind. It is nice to know that it is possible to succeed and still have integrity.

  19. Great article, and well put, Joel.
    I’ve always appreciated your honesty and being out in front of the trends before they even begin.
    Since I’ve followed you – starting at least 4 years ago – you’ve been out in front of several different areas that ultimately became, and still are, huge.
    One being video usage in sales letters and other facets of IM, and two – Twitter. You were one of the first, or perhaps, the first, instructor that I recall who wrote an eBook on what Twitter was, how to use it, and how big it would become. This was way before most people had ever heard of Twitter.
    I also remember reading an email of yours several years ago preaching how video was going to soon be the dominant media platform in marketing online. It’s clear you were right about both!
    I have a comment first, then a question:
    I just recently came across the whole Syndicate thing and Salty Droid. I guess Im a little late to the party. However, I always came close to buying some of their $2000 products. But I never did, mainly because the prices were what I thought were way too high.
    I have bought two of your products in the past, one was Adsense Secrets(unbelievably informative for I think $97) and another I cant recall off top of my head.
    One thing that always turned me off was every time one of the big IM launches came out, I’d get affiliate emails from them all, promoting the same launch. So, I always thought to myself: “don’t these guys make money by employing the strategies they teach, or do they just make cash from affiliate commissions on each others products?
    To this day, I still wonder. I suppose they have internet businesses other than selling IM info products, most say they do, but I wonder.
    Nothing more phony than a guy who has never succeeded at what he’s charging money to teach you.
    Ok, that’s my comment, now for the question…
    Since I’ve never bought any of their “legendary” products (ie. Stompernet, Mass Control, PLF, et al) – Are any of these products actually worth the money? I mean, are they good? Do they render the education they claim to? Or is it just rehashed crap wrapped up in a pretty box with a lot of “social” proof.
    All of those guys, for the most part, seem to know what they’re talking about. And their sales letters, videos, emails, etc. always appear to be pretty high quality productions.
    Like to know your thoughts, or anyone else who’s been a customer of the “Syndicate”.
    Thanks for being real Joel…
    Best & be blessed,
    Jim

  20. Great Post Joel,
    Yes, those big guru IM marketers use really sleazy, slimy and contemptuous marketing tactics.
    I ran across The Salty Droid and it made me think RICO if even half the stuff he posts is true.
    You know, just like they preach, there really is long-term value in creating a relationship with your customers.
    Instead, their hubris and “suck all the money you can out of the herd” mentality probably means the only long-term relationship they will have is with the FBI and the FTC.

  21. “People need real solutions, not another course on making money online from someone who has only made money online selling courses on how to make money online.” This point is so true Joel. But the thing is, as long as there are still good money to be made from peddling such products, there will continue to be many more such self-proclaimed gurus pushing their magic-button-get-rich-quick kind of products to unsuspecting newbies. And the way I see it, this is a problem that will be here to stay. Now only if there are more gurus like you who go about educating people on how to be more discerning and to identify quality solutions.

  22. Joel, I respectfully disagree. I purchased a $1997 product over the summer and I have already made my money back plus, it has catapulted me to another level in my business. To me it was worth and yes there were several marketers offering me bonuses for using there affiliate link and I shopped around and picked the best one. I received another product for my purchase what is wrong with that? It makes the competition fierce. I can’t compete with most of those guys as an affiliate, plus IM isn’t my niche so I don’t plan on trying. I think that if they make a product they have the right to ask what they want. If they price it high they are aiming at successful people who can afford it and they are not aiming at opportunity seekers who just are after the next big thing. Sure there are some crooks out there, but all of these big name guys as far as I can tell are offering quality information, it is just up to the people to get off of their behind and use the info. I mean there is always going to be those guys who are manipulating, however in the end it is like a fan whatever they are throwing out will eventually blow back on them.

  23. Dear Joel,
    Again, nice article covering guidelines on proper marketing ethics. I have read all 3 inter related articles, inclusive of “The Dark Side of Internet Marketing” and “The Long Form Sales Letter. I think, true intention to provide valuable service to the customers should be the key value for everyone involved in marketing. This is key item that I am learning from your 3 articles.
    Have a nice day.
    Regards,
    Devan

  24. A great read. I find it staggereing that nearly all of the courses being offered drive newbies to the same old saturated niches. There is still much untouched territory for those who are willing to diversify and play the long game. Long standing success is usually the result of hard work and a customer focused business model. Sadly, many people are in and out of I.M without ever realising the true value of what they have learned. This is largely down to those individuals described above and is bad for all of us.

  25. Totally agreed to your analysis – if this so-called experts are making that much of a million then they should not be in the business of selling ridiculous packages or softwares, which many do not even work properly! Shame on these guys…

  26. Very well said! If only more people were willing to stand up and speak out maybe the trend would change!
    It’s time to bring integrity and true value back!
    How more people don’t see straight through these ‘get rich schemes’ is incredible. They devalue themselves before you leave the sales page with their ‘wait, before you go…’ pop up messages offering you the same product at a fraction of the original price!

  27. Oh I agree with the statement no one gets rich quick method. Just as the write ups says that we get rich overnight? It’s not true, you have to work on it just like the others because if it’s true, I know they wouldn’t share it with everybody.

  29. Have to agree with Joel, I feel that there are alot of people out there that think just by building a website or two “they’ll make million of dollars”. Unfortunately this isn’t the case for 99.9% of us.

  30. The key factors to real internet marketing success are passion and authority. Almost always, passionate marketers will succeed over money-obsessed ones. And with authority comes the trust of search engines and users. When search engines trust you, they’ll reward you with higher ranking than competitor websites. And when people trust you, they’ll buy from you.

Leave a Reply