Killing Community: Graham Langdon, Entrecard

Graham Langdon, self-described as a 23-year-old college drop out intent on making money, has it all figured out. In 2007, he adopted the business model originally developed by BlogRush, which is best described as a defunct throwback to “Web 1.0″ affiliate schemes.

His solution was to develop Entrecard, which was originally a free "business card" ad swap network based on a credit system. The model has recently undergone dramatic changes after several failed attempts to secure venture capitalist funding and no takers when he attempted to dump the company for $100,000. (Several buyers told me the latter was more of a publicity stunt to establish equity than a serious intent to sell.)

The new model attempts to monetize what once was a free service by exchanging the credit system with real currency, and with Entrecard keeping 25 percent on the blogger's side of the transaction. Ever since, not all has been well in the land of Entrecard.

Trading community in for cash.

If there was any reason Entrecard survived BlogRush, it was because, just below the surface of what seemed to be a junk traffic site, there was some semblance of niche communities, especially among mommy bloggers and craft blogs and personal bloggers. No "A list" bloggers, mind you, just regular people who blog.

The new cash model trades down that community, because advertisers do not have to reciprocate with Internet real estate. It is much easier to spend $25 without any participation whatsoever than to participate under the new rules. That is, for now. At the same time Entrecard is opening the network up to advertisers, it is imposing rules on the original community that made Entrecard viable.

Dropping quality ad real estate for fairness.

Originally, the first placement rule was that the Entrecard widget had to be placed "above the fold" until the decision was reversed after push back. Not to be deterred, however, Entrecard launched a variation of the rule based on the pretense of "fairness." Unfortunately, crowd sourcing "fairness" is only as good as the most intelligent participants. In this case, none of placement restrictions consider the obvious; the program can never be "fair."

• Quality sites will always benefit advertisers with more traffic than inferior sites.
• Less ad competitive sites will always benefit advertisers more than ad heavy sites.
• Load time is much more signifiant than where an advertisement is placed.

Ask most media buyers and they'll tell you that it's better to own a page toward the bottom of a fast-loading quality site than for it to appear at the top of a slow-loading low quality site filled with ads. However, some suspect that there is another benefit to imposing the rule all together. Entrecard can now exempt many members from a cashout service, which would allow them to covert old credits into cash.

The service, which is being delayed until after the rule is imposed, presents several logistical nightmares in that Entrecard is attempting to justify exempting members from the service under the old Terms Of Service, while deleting their accounts for violating a rule created in what will be a new Terms Of Service. And, since Entrecard has since placed a cash value on credits, some consider its actions theft or, at minimum, another taxable event to go along with the credit to cash conversion.

Communication breakdown is commonplace.

In terms of communication, the entire conversation continues to be grossly mishandled. Most Entrecard participants had no idea the rules would be changed until they received a warning that they would be suspended if they did not comply within 72 hours. When members complained, the network pointed them to a post on the Entrecard blog, as if it was required reading.

What did not occur, like many network developers forget, is that most members do not read the network blogs. Communication, especially when it involves changes to Terms of Service (TOS), requires being proactive instead. And, in the case of Entrecard, its own TOS states it's required: "Entrecard reserves the right, at its sole discretion, to modify or replace any part of this Agreement. In such an event you will be notified four days prior via the email address associated with your user account."

This is not the only time Entrecard has broken its own rules. Advertisers were recently surprised to see the service arbitrarily double ad rates overnight. The only notification advertisers received was after the fact, with the justification that the network doubled the cash balance listed in everyone's account (and here we thought only the government could create money).

Add to this all the other problems associated with the program, and its anyone's guess what will happen next. One thing for certain: some advertisers are miffed to learn that the promise of targeting a specific category does not work. Currently, if you select a category on Entrecard, the category selection is confirmed, but advertisements are placed network wide.

Sustainability seems to be in question.

The net result of Entrecard's quest for cash seems to be aggravating an exodus of better bloggers. The departures began approximately six months ago.

While Langdon claims traffic has never been better, the truth is that Entrecard is becoming what people labeled it to begin with: a junk traffic site. Except, you have to pay for it. He doesn't mind. After all, bad publicity is good for business he says.

"A lot of people have this crazy misconception that bad publicity is actually bad for internet sites. Why just yesterday, we got a slew of bad publicity when we banned an Entrecard member for harassment and trolling," wrote Langdon. "Everyone was twittering about it and blogging about it, and tons of people were coming to Entrecard. Look at what happened to our blog’s traffic ... It doubled!"

Right. And more people will look at you on the road after an accident. Just ask Domino's.

What other members and former members are saying:

WTF, Entrecard Pt.II at Simply Saying

Entrecard Hoolabaloo at Vinallaseven

They’re Takin Your Booty Mates at Recycled Frockery

Entrecard Announcement at The Dirty Shirt

No More Entrecard at The Sofia Valeria Collection

Bagging On Taxes: American Taxpayers

April 15, which is the date Americans file their tax returns with the IRS, used to be a day filled with fear for most. Now, it seems to be shaping up as a day of reckoning, as citizens in more than 2,000 locations across the United States are holding "tea parties" to protest higher taxes and out-of-control government spending.

Using the same tool — the Internet — to organize as President Obama did to win the presidential election, ordinary citizens are expressing their apparent dissatisfaction with the "real change" as opposed to the "promised change" that the new administration has taken. By 2010, the estimated national debt, or debt held by the public, will equal approximately $81,000 per U.S. household. That is almost three times as much as it was in 2007.

As if taking a page from the fans of Jericho and others, one of the more creative ideas developed by the GOP is to help people send tea bags to their choice of President Barack Obama, Vice President Joe Biden, Senator Harry Reid, or Speaker Nancy Pelosi. Each tea bag features an elephant watermark. The effort is duplicated by another organization, without an elephant watermark, here.

Regardless of how one feels about tea parties or the administration, there is an interesting side story playing out today. There seems to be discrepancies between the majority of news organizations and live reporting from everyday people. In short, the public has a clear choice between which reality they want to believe: either Americans are upset with taxes or they are not.

Either you call the original Boston Tea Party "shameful" like Charles Arlinghaus did for the UnionLeader, or you consider it one of the first steps toward independence in America like history does. (While Arlinghaus is right that the tea parties will have to grow into positive action beyond rallies, he's wrong in believing such protests don't mean anything.)

Are Tax Parties Hype Or Hope?

If you believe CBS, the concept of any public outcry is contrary to recent polls that place President Obama's approval rating as high as 67 percent, Americans largely approve of higher taxes, and 74 percent want the "rich," now defined as anyone making more than $250,000 per year, to be taxed more.

Or, you can wonder what President Obama might know about the real numbers behind the movement given he choose to speak about simplifying the tax code at the same time some cities had organized their rallies. This strategy seems to fall in line with what everyday people are reporting — that there is a real grass roots movement at work, and not just among conservatives.

One of the best examples of the extreme reporting that we noticed today comes courtesy of the Washington Post. The Post reported on a Facebook tea party group with 1,800 members. However, when we checked, it had 31,000 members.

The Post story links to a defunct blog as an example. However, CNN chose the National TEA Party, which has 18,000 Facebook members. Among the best non-news reporting seems to be found at Ta Day Tea Party. There are also several localized Facebook accounts, with as many as 500 to 1,000 members each.

One of Michelle Malkin's posts seems to suggest why there might be so much confusion. She says there are as many as four or six different hashtags to follow tea parties on Twitter. Why is that significant? It demonstrates that the varied reporting is indicative of largely independent groups rallying around a common theme, but very different campaigns. And, contrary to the CBS poll, another poll conducted by Harris Interactive suggested that the majority of Americans think taxes are too high.

The Real Facts Are Being Buried.

In order to find the truth, you have to remove some of the opinions. Polls don't reveal facts as much as much as figures.

Americans will pay more in taxes than they will spend on food, clothing, and housing combined this year. In fact, according to the Tax Foundation, most Americans have to work between 82 and 120 days just to pay their taxes, depending on the state in which they live. Alaskans pay the least and the people in Connecticut pay the most.

The only reason most people feel comfortable taxing the rich more, despite the fact that the top 5 percent of all wage earners already pay 60 percent of all taxes while the bottom 50 percent pay only 3 percent of all taxes, is because, well, it's the other guy. And, the reason some people chose to protest today is not because they are dissatisfied with recent tax cuts, but rather because they know that the mounting national debt will have to be repaid sooner or later, and taxpayers will have to pay it.

Our country's current fiscal policy is best likened to a teenager on a spending spree. It seems like there is progress toward creating a better lifestyle with the recent purchase of a new flat screen television, smart phone, and club clothes. But that progress will quickly come to a halt when the bill comes due, the repo man takes the stuff back, and still charges interest.

Measuring Communication, Cost Part 3

Another overlooked cost consideration in communication measurement is the human equation. Simply put, not all communication teams — public relations firms or advertising agencies or whatever — are created equal. Some demand more time from their clients than others.

It's the kind of cost consideration you might not find in Geoff Livingston's otherwise fine post on communication measurement. Firms that consider this cost will know which outcomes to measure and which ones to not measure (e.g., number of conversations about, while popular among publicity proponents, is not a measure unto itself in most cases).

Cost Consideration In House.

For example, most CEOs committing to a daily post, written by them, carries a tremendous expense to the company except in circumstances such as but not limited to crisis communication. The average CEO at a Fortune 500 company, for example, makes approximately $500,000, not counting bonuses. With bonuses, the top 20 made $36.4 million in 2006 on average.

Median salaries are much more modest. According to PayScale, the median base is between $150,000 and $200,000. While there has been ample debate about CEO salaries lately, that is not the intent of this post.

While admittedly a steep contrast, the question becomes how many $100,000-$200,000 posts can a top paid CEO afford to write, assuming they are authentic enough to write their own? Likewise, how many public relations meetings can one CEO attend? Or even, how many interviews can one accept? And what could they be doing instead?

While the answer is situational because there is little doubt that CEOs needs to be involved in the communication, in-house departments still need to pay close attention to how much time is being vested by whom.

On a more reasonable scale, the communication manager might ask if they need to write every release or does it need to be written by a less experienced member of the team? And, what could they communication manager be doing instead of hanging out on Twitter? Clearly, there may be benefits to doing so, but only with balance, and only if there are tangible outcomes.

Cost Consideration With Outsourcing.

For the in-house department outsourcing services, the question becomes one of affordability vs. expediency. Does the consultant add more experience for the investment or require more hands-on management than the scope of the project?

As an extreme example, I've seen less experienced team members take days to perform tasks that could have taken someone else a few hours. And, I've seen out-of-house firms require so much handholding that it becomes difficult to tell who was the client. In other cases, some managers complain that they have to significantly rewrite every release submitted by the public relations firm. But what they don't consider is that doing so doubles the cost of the work and distracts from other tasks.

Ideally, the right work needs to be matched with the right experience level, inside or out. While the concept might seem abstract to some, human asset management can have dramatic consequences on the end result.

Download The Abstract: Measure: I | O = ROC

The ROC is an abstract method of measuring the value of business communication by recognizing that the return on communication — advertising, marketing, public relations, internal communication, and social media — is related to the intent of the communication and the outcome it produces. Every Monday, the ROC series explores portions of the abstract, with exception of today.

Making Connections: James Hoke, What Goes Up

Three years ago, James Hoke, president of Las Vegas-based Destination Marketing Group, had a single conversation that became a defining moment in his life. While he didn't know it at the time, that single conversation set the stage for another conversation almost a year later.

“Do you want to start a production company and make a movie?”

Today, James Hoke is an executive producer behind the film What Goes Up (formerly Safety Glass), which is scheduled for release to select theaters in early May. It stars Steve Coogan, Hilary Duff, Josh Peck, Olivia Thirlby, and Molly Shannon.

"You don't really appreciate how much communication is required as an executive producer until you have the job," says Hoke. "You work 12-hour days seven days a week on slow days, with a team that is literally brought together over night. It might sound like long hours, but my love for the job and a balanced life makes it feel a lot less like work. Of course, that's not to say I wouldn't have loved to know everything I know now back then."

Like all films, producing What Goes Up wasn't without challenges. The production took longer to complete than originally anticipated, there was some initial confusion in the United States over the title, and Hoke wishes they would have built in marketing, public relations, and social media efforts when the production began.

"The film took a little longer to complete, but for good reason. We really wanted to record and incorporate a new Hilary Duff single into the soundtrack," says Hoke. "We couldn't complete the original song until November last year. We think it was worth the wait, and we're hoping Hilary Duff fans agree."

The soundtrack for the movie, which Hoke will be sharing more information tomorrow on the What Goes Up Insider blog, was overseen by Anthony Miranda, one of three partners in Three Kings Productions, which was the driving force behind What Goes Up. Miranda has worked on several dozen movie soundtracks.

"Well, I'm obviously biased, but Miranda is such an amazing talent," Hoke said. "I think he is going to surprise a lot of people with the soundtrack he has put together."

As for the change in titles, Hoke says there wasn't much to it. Sony Pictures Home Entertainment, which is responsible for North American distribution, came up with the new name.

"There really isn't much of story there," says Hoke. "I actually love the name. I hope everyone does too. It lends a lot of meaning to the film given the message. We all need heroes, and we need them so bad that sometimes we forget our heroes are human."

Hoke is hoping the human connection plays out in other ways as well. Currently, he is the driving force behind marketing and public relations efforts, which includes employing social media to help make a connection with fans. According to Hoke, he wants to develop a model where fans can connect with cast and crew on a different level than traditional marketing efforts alone.

"After seeing thousands of fans visit the production blog despite being in development, I can only imagine what might have happened if we started a year ago while we were still in production," says Hoke. "I think back on this amazing journey and now realize that fans could have been part of it all in real time. My advice to any producer, especially independent film producers, is start your efforts early and RIGHT NOW. Movies are magical experiences. You don't have to share every detail, but it's important to recognize that people want to be involved, and it would be very beneficial to have a base well before distribution."

Hoke adds that he and his partners are fortunate and grateful that fans have taken an interest in the film. With five solid stars rounding out the cast, many have expressed that they feel as if they have as much of a stake in the movie as the producers. In some ways, they might be right.

What Goes Up is only a few weeks away from its first appearance in theaters. As a limited theatrical release, it will require a very different marketing approach than the proverbial blockbuster. Hoke says they will roll the film out in select major markets, connecting with fans internationally and focusing most marketing efforts in those select markets.

"We've paid close attention to what other films have done right and wrong, and we think that will give us a significant advantage," says Hoke. "If I have any concerns it will be that some fans won't see some of the efforts we are putting forth on the local level so they will assume we're not doing everything possible. We will be. And with their support, the early success will determine how far the movie will go."

Hoke says that might sound like a long shot, but many aspects of the film seemed like a long shot at different stages of development. Producing an exclusive single with Hilary Duff seemed like a long shot. Reaching an agreement with Sony Pictures Home Entertainment, which has helped develop several key aspects of the film, including a movie poster that resonates with fans, was a long shot. Teaming up with Kirk Shaw at Insight Film Studios, LTD., which Hoke defines as an amazing company, seemed like a long shot. Working the people at Sony Pictures Entertainment (SPE) Worldwide seemed like a long shot. And looking all the way back to the first conversation between Hoke and Joe Nahas seemed like a long shot too.

"Looking back at the first story written in 2007, I have to ask myself, what part of this production wasn't a long shot?" says Hoke. "What part of anything great in our lives isn't a long shot? In many ways, that is what this real film is about. It's about what makes a hero, and I think that's what people will be asking well after they leave the theaters. We're all human."

In an effort to keep it real, Hoke concludes that he will be undertaking what he calls another "long shot" tomorrow — writing his very first blog post. He says it will be the first of several to round out a mixed editorial concept, which includes alternating between weekly news announcements, guest posts, interviews, and review highlights.

Why is writing a post a long shot? He laughs, saying that when it comes to movies, writing is sometimes best left to people like Jonathan Glatzer and Robert Lawson, the two writers responsible for the script.

The weekly ROC post, which focuses on communication measurement and usually appears on Mondays, will be follow tomorrow. Additional disclosure: Copywrite, Ink. is involved with the release efforts; this story is independent of those efforts.

Switching Hitters: Left Brain Or Right?

Understanding psychology is great fun for advertisers and marketers. So much fun that there has always been ample discussion whether purchasing decisions are made with the left brain (rational) or right brain (emotional).

It's even more fun to discover that there is so much discussion in this topical area that, depending on the day, the same sources are really arguing among themselves. And, each time they do, they benefit from the coverage. Case in point.

The Case For The Left Brain.

Last year, Branding Strategy published a post by Jack Trout, which makes the case for rational advertising over emotional advertising. In it, they cite Mark Penn's book, Microtrends, that stresses "the rational side of people is far more powerful in many areas of life than the purely emotional side."

The post then goes on to cite TiVo, the current leader in digital video recorders (DVRs), which had just examined the commercial viewing habits of some 20,000 TiVo-equipped households, including which ad campaigns are fast-forwarded past by the lowest percentage of viewers. The results, they concluded, weigh heavily in favor of rational arguments.

Of course, Branding Strategy revised this thinking later in the year, suggesting the opposite was true in 12 Causes of Bad Brand Advertising. Brad VanAuken cited Harding’s 1996 study of buyers in ten corporations that "demonstrated that corporate buyers overwhelmingly rely on personal and emotional reasons over rational ones in their purchase choice."

That's okay. TiVo changed its position too.

The Case For The Right Brain.

TiVo, working with Innerscope Research, a biometric research firm, released a new study that suggests the opposite.

In a live study of 55 national ads, TiVo and Innerscope found that TV viewers are 25 percent more likely to fast-forward through ads with low emotional engagement than those with high emotional engagement. The data suggests that ads that are more emotionally engaging are more likely to be viewed in their entirety even in a time-shifted environment.

“We’re measuring emotions because emotions matter,” says Carl Marci, CEO of Innerscope Research, in a related article. "The science is very clear that emotions are prime determinants of behavior."

The study was originally conducted in late 2008, and then compared live biometric monitoring of emotional engagement with scores from TiVo's Stop||Watch(TM) ratings service, which collects anonymous, second-by-second audience research data from 100,000 TiVo subscribers. When the two metrics were compared, the emotional engagement of Innerscope's viewers correctly predicted whether, and how many, viewers would elect to fast forward at any given moment.

Our Take On The Brain.

We don't pick sides. For all the studies, it seems obvious that people are people, and different people react differently to different things.

Some people are predisposed to making emotional purchasing decisions based on personal trends (the shiny object afflicted) or because they want to help others (chronic solution providers). Others are predisposed to making rational purchasing decisions based on price point (bottom liners) or a logical presentation of facts (analytically enabled). Most people are some degree of two (assuming they aren't polar opposites).

Most advertising has a tendency to target one trait extremely well — e.g., children's cold medicine — or some pairing of the two — e.g., a cheap and trendy app. Of course, the very best advertising, which you don't see very often, hits all four equally.

If you still want to keep it simple, emotional vs. logical advertising, there is one broad-based solution. Emotional communication most often attracts interest while rational communication closes the deal or at least prevents buyer's remorse. And if you don't believe it, then wait for the next study that reveals whatever the opposite of whatever today's study says.

As for which advertisements do most consumers really fast forward? They fast forward on the very first bad commercial, and all those that are unfortunate to follow it during the break. No study needed.

Demonstrating Courage: Jason Teitelman

Jason Teitelman, Web designer and office manager for for SiteProPlus Website Design, is no stranger to St. Baldrick's, a foundation with the mission to raise awareness and funds to cure kids' cancer by supporting cancer research and fellowship. Like many people, he had seen posters in local stores and coffee shops and always thought it was a fun idea.

"I had never really thought about participating, but this year was different," says Teitelman. "I saw the event posted on BloggersUnite.org and it prompted me to visit the St. Baldrick's Web site. After reading a few of the children's stories, especially the memorials, I felt like I really wanted and needed to do something to help."

So Teitelman enrolled to become a "shavee" at Dell Children's Medical Center in Austin, Texas. Shavees are people who shave their heads and help raise funds for children with cancer. According to Teitelman, the facility was amazing and the staff were friendly and compassionate.

"I just want to acknowledge the fact that they put on a wonderful event," he said. "Everyone I went with was impressed with the center as well as all of the support."

There were several memorable moments, Teitelman recalls, ranging from an outpouring of support from his family (mom, dad, wife, son, brother-in-law, and niece) to his 13-month-old son's initial puzzled pause after his head was shaved. Equally memorable however, were the parents of sick children who were especially appreciative of the support.

"They were really thankful for people like me, who haven't had any direct experience with childhood cancer," Teitelman said. "They appreciate everyone who takes a few minutes out of their day to recognize that there are children and families out there who are going through very difficult times. They could use all the help they can get."

For his part, Teitelman raised $295 of his $500 goal. But given the total donations raised by all participants, but he stresses that he was happy with the results nonetheless. In fact, he says joining the BloggersUnite.org event had a greater impact than he ever imagined.

"I am planning on doing it again next year," Teitelman said. "And after seeing me do it, some of my family members are thinking about participating also!"

Another interesting aspect of Teitelman's participation in the event was that while he does have a blog, he hasn't updated for it some time. Instead, he enrolled in BloggersUnite.org and used his Facebook account to promote the event and let people know about his participation. It's also an interesting side bar to the success of the new BloggersUnite.org network in that anyone can make a difference.

"I'm also looking forward to participating in Earth Day because there is always a great outdoor activity to look forward to," says Teitelman. "And, now I'm in the process of helping a friend organize a 'Work Happiness Action' day where we ask people to do something to make people a little happier in their workplace."

We think that's a great idea, and plan to keep an eye out for it in October. Sometimes, it's those less tangible results, like those started by Teitelman, that create a butterfly effect, without measurable limits. And we think that's pretty courageous.

There are currently more than 80 events listed at BloggersUnite.org and one "main event being BlogCatalog, Bloggers Unite, Copywrite, Ink., and Heifer International.