Or as anything relating to writing and online researching. I was looking at a request [...]]]> I was looking for more work online and realized that Alaska’s $7.75 per hour minimum wage is by no means a low hourly wage. Anyone that thinks it is, just needs to try to earn some money as a writer.

Or as anything relating to writing and online researching. I was looking at a request for a virtual assistant, and in one of the ads I found the person wants to pay $30 for 25 hours of work. That means they want someone that will do all kinds of tasks for them such as writing and research and a variety of other listed daily activities, for at least 5 hours per day, and they want to pay them $1.20 an hour. That’s $6 for a full day’s worth of work. That might seem like a lot in some countries, but for me it does not even pay one month’s fees on my websites. I think my mom made more than that in the 1960′s working as a waitress in diners.

The online world, in particular the world wide aspect of the online world, has completely devalued the skills of anyone working online for a living. Average pay per word seems to have dropped down to $0.002 per word for writing. That means that to earn $1 online a writer needs to write 500 words. Average typing speed is, I think, around 62 wpm… going by that, if all they do is write, no research no pauses, solid typing at the computer, a writer can kick out around 3,720 words in an hour. And that does not account for any research or proofreading after the piece has been written. So, let’s be very crack-the-whip toward the writers and say that they can write 2,000 words in an hour, which includes a little research about what they are supposed to be writing and writing it, and proofreading, and since they are writing it for someone else that also needs to include the time it takes for them to send the writing back to the person who now owns it.

Yes, owns it. For that $0.002 per word the writer is giving away all rights to the piece and the person purchasing it owns all rights to it forever.

So, 2,000 words plus research plus sending them off to the person who bought them means the writer is working very hard to earn $4 an hour. An average of about half minimum wage in Alaska. Earning roughly $20 per day, five days a week makes it $100. So, writing their fingers off five days a week a writer can earn around $400 in a month, bringing the income for online writing up to somewhere between $500 and $1,000 if they work really really hard and can get enough work that they are not taking breaks or weekends off.

There is no room for the writer to take on a second job, because all of their time is spent writing to manage to earn what is basically rent for their home for the month. There is little if any time left for them to relax and enjoy time with friends and family, not if they want to hit the mark of possibly earning enough to pay the mortgage.

I’m not sure what a writer is to do when a world-wide market for skills means that even the best writers are competing for work that can be done by someone willing for work for $1 a month. And it is really bad that even $5 a week of guaranteed income is looking really good to me, no matter how hard I have to work for it.

So, what is the least you would take per word writing online? Has the online market caused a major undervaluation of a writer’s time?

On October 5, 2009 the FTC released a press release on the publication of their final guidelines governing endorsements and testimonials, it was this guideline that would [...]]]> In 2009 the Federal Trade Commission (FTC) began to look more closely at the guidelines that governed advertising, in particular as it applied to blogging and social media.

On October 5, 2009 the FTC released a press release on the publication of their final guidelines governing endorsements and testimonials, it was this guideline that would affect the way bloggers would work with advertisers. From their press release:

FTC Publishes Final Guides Governing Endorsements, Testimonials

“The notice incorporates several changes to the FTC’s Guides Concerning the Use of Endorsements and Testimonials in Advertising, which address endorsements by consumers, experts, organizations, and celebrities, as well as the disclosure of important connections between advertisers and endorsers. The Guides were last updated in 1980.”

For the first time the FTC specifically addressed the concerns of blogging and product endorsement. In particular the FTC looked at posts by bloggers that had received cash or in-kind payment for review of a product to be considered an endorsement and new guidelines that specified that bloggers were to be required to disclose when they had material connections to a seller, product or service.

Their concern was not that bloggers made money through product endorsement, it was in the ethical question of if bloggers were being paid to give a false positive in their endorsement of products. In their revised guidelines, the FTC defined endorsements as being any advertised message that the consumer might believe expressed the opinions of the person who offered the endorsement rather than of the advertiser who sponsored the advertisement.

In the Revised Endorsement Guidelines the FTC offers the following example for when a blog posting is considered an endorsement under their new guidelines:

“A consumer who regularly purchases a particular brand of dog food decides
one day to purchase a new, more expensive brand made by the same manufacturer. She
writes in her personal blog that the change in diet has made her dog’s fur noticeably softer
and shinier, and that in her opinion, the new food definitely is worth the extra money. This
posting would not be deemed an endorsement under the Guides.

Assume that rather than purchase the dog food with her own money, the consumer gets it
for free because the store routinely tracks her purchases and its computer has generated a
coupon for a free trial bag of this new brand. Again, her posting would not be deemed an
endorsement under the Guides.

Assume now that the consumer joins a network marketing program under which she
periodically receives various products about which she can write reviews if she wants to do
so. If she receives a free bag of the new dog food through this program, her positive
review would be considered an endorsement under the Guides.”

In section 225.1 General Considerations the FTC states that any endorsements “must reflect the honest opinions, findings, belief or experience of the endorser.” They also specify the liability of unsubstantiated claims made by a person who is being paid to write about a product. Under item c of that section they clarify how this pertains to blogging:

255.1 (c)

Example 5: A skin care products advertiser participates in a blog advertising service. The
service matches up advertisers with bloggers who will promote the advertiser’s products on
their personal blogs. The advertiser requests that a blogger try a new body lotion and write
a review of the product on her blog. Although the advertiser does not make any specific
claims about the lotion’s ability to cure skin conditions and the blogger does not ask the
advertiser whether there is substantiation for the claim, in her review the blogger writes
that the lotion cures eczema and recommends the product to her blog readers who suffer
from this condition. The advertiser is subject to liability for misleading or unsubstantiated
representations made through the blogger’s endorsement. The blogger also is subject to
liability for misleading or unsubstantiated representations made in the course of her
endorsement. The blogger is also liable if she fails to disclose clearly and conspicuously
that she is being paid for her services. [See § 255.5.]

In order to limit its potential liability, the advertiser should ensure that the advertising
service provides guidance and training to its bloggers concerning the need to ensure that
statements they make are truthful and substantiated. The advertiser should also monitor
bloggers who are being paid to promote its products and take steps necessary to halt the
continued publication of deceptive representations when they are discovered.

The FTC addresses the need for disclosure of material connections between an endorser and an advertiser in section 255.5 Disclosure of material connections and paragraph 2 of Example 3 defines it in terms of social networking sites using the example of a tennis player that discusses laser surgery that was received at a specific clinic she has been paid to endorse:

Assume that instead of speaking about the clinic in a television interview, the tennis player
touts the results of her surgery – mentioning the clinic by name – on a social networking
site that allows her fans to read in real time what is happening in her life. Given the nature
of the medium in which her endorsement is disseminated, consumers might not realize that
she is a paid endorser. Because that information might affect the weight consumers give to
her endorsement, her relationship with the clinic should be disclosed.

A bit farther down in Example 7 they define what is expected in product endorsement disclosure in a blog post:

Example 7: A college student who has earned a reputation as a video game expert
maintains a personal weblog or “blog” where he posts entries about his gaming
experiences. Readers of his blog frequently seek his opinions about video game hardware
and software. As it has done in the past, the manufacturer of a newly released video game
system sends the student a free copy of the system and asks him to write about it on his
blog. He tests the new gaming system and writes a favorable review. Because his review is
disseminated via a form of consumer-generated media in which his relationship to the
advertiser is not inherently obvious, readers are unlikely to know that he has received the
video game system free of charge in exchange for his review of the product, and given the
value of the video game system, this fact likely would materially affect the credibility they
attach to his endorsement. Accordingly, the blogger should clearly and conspicuously
disclose that he received the gaming system free of charge. The manufacturer should
advise him at the time it provides the gaming system that this connection should be
disclosed, and it should have procedures in place to try to monitor his postings for
compliance.

And of interest to anyone in social networking is Example 8 which addresses disclosure in forums:

Example 8: An online message board designated for discussions of new music download
technology is frequented by MP3 player enthusiasts. They exchange information about
new products, utilities, and the functionality of numerous playback devices. Unbeknownst
to the message board community, an employee of a leading playback device manufacturer
has been posting messages on the discussion board promoting the manufacturer’s product.
Knowledge of this poster’s employment likely would affect the weight or credibility of her
endorsement. Therefore, the poster should clearly and conspicuously disclose her
relationship to the manufacturer to members and readers of the message board.

In reading through the guidelines it is clear that the FTC finds nothing unethical in a blogger, or someone participating in social networking, being paid or given in-kind payment for their opinion on a product or service, they simply require that the average reader of such information be able to identify when someone is being compensated by a company to write about their product or service. Their ethical stand is simply that they require any such endorsement of a product or service to be an honest representation of the product or service based on the personal experience of the person who writes the blog entry, with equal responsibility being on both the advertiser and the endorser to assure that all statements and claims made are true and able to be substantiated.

The FTC is also very clear in their caution that the guides do not cover every possible instance of endorsement, and that any instance of endorsement would need to be weighed on the actual circumstances of the advertisement.

The best advice I could offer to anyone that is looking to incorporate advertising into their blog or social networking would be to pause, take a good look at your blog, and ask yourself – “If this blog belonged to someone else, and I was a new reader, would I be able to easily identify endorsements where the blogger was paid in some way to write about something?” Another question that you should, in my opinion, ask yourself is “Would I have recommended that without having been paid in some way for the recommendation?” If not, you need to make doubly certain that the average reader can identify that you are being paid in some manner for making endorsements on your blog. You do not have to disclose how much you were paid, although it is usually appropriate to indicate if you received the product for review, you simply need to be sure that your reader can identify endorsements where you were paid in some way by the advertiser to recommend their product or service.

So, that is the FTC’s perspective on the ethics of blog advertising, now I want to hear what you have to say. What do you think? Is it unethical to publish advertising on a blog? Why or why not?

In 2008, Burst Media did some research into The Perils of Ad Clutter and [...]]]> In this post: I will be sharing what I can find about what the average site visitor seems to think of each type of revenue generation and which ones I find more or less obnoxious when I visit websites and blogs.

In 2008, Burst Media did some research into The Perils of Ad Clutter and how website visitors view a website that is cluttered by advertising. Their survey included over 4,000 web users who responded both to their Internet experience and their perception of advertisers.

It should be noted that the Burst Media definition of “Ad Clutter” is the presence of so much advertising on a webpage that it degrades the experience of visitors.

Two things that became immediately apparent and really, I do not think, required a study were:

• Website visitors do not like ad clutter and will leave a website they feel is cluttered with advertising
• Ad clutter can have a negative impact on a consumers’ perception of a product or service

For the freelance writer this means that care must be exercised on what kind of advertising is used on their site, and how it is used. In the Burst Media study it was determined that men were less likely (27.5%) than women (32.1%) to leave a website they considered to be cluttered with advertising. So if your primary audience is men, you can likely get away with a cluttered website as long as it has the information they want buried somewhere in the advertisements. If your audience is composed of mostly women, however, they are going to want less advertising and more quality content. This trend tended to increased with the age of the respondents up to age 55-64, when after 65 the abandonment dropped back down to the high 20% range for both men and women. In all age groups for both men and women the lowest number was for men aged 35-44, and even then 24% said they abandoned a website if it was too cluttered by advertising. The lowest number for women was the 65 and older age range, where 27.3% said they would abandon a website they felt was too cluttered by ads.

The concern for advertisers is in the response that potential customers have to seeing their product or service on a website that the visitor perceives as being cluttered with advertising. In the Burst Media research it was found that 52.4% of the respondents had less favorable opinions of a product or service after they had seen it on an ad cluttered website. That is a disaster for advertisers who could potentially be harmed by their own advertising. And again, women were more likely than men to voice an unfavorable opinion after having seen an advertisement on a page they perceived to be cluttered.

For those who maintain a website, this means they need to look carefully at what advertising they present to their visitors. I have left news sites that had too much advertising for me to easily read the article I wanted to read – and I am not talking about a single man operation blog, I am talking about a major newspaper (think L.A. Times, NY Times, etc – it was a major newspaper website that was over-cluttered by advertising.)

When I visit a website, I have learned to zone out certain areas as being advertising heavy. I tend to ignore the upper right section of a web page, where banner ads are most often displayed. I also ignore the area directly above content and any interruption in the content. I will also ignore most of the items shown on the side (left or right) of a website. These are all common places for advertising to be placed.

This automatic skip has brought on a new style of advertising that is still finding its place in online advertising. In Content Ads. These are going to require a post all their own, so… next up in this series – In Content Advertising…

Earnings: Were you self employed with earnings more than $400.00?

If so, then chances are that yes, you will need to file taxes as being self-employed.

The next obvious question [...]]]> Probably the first question you have thought is “Do I have to file taxes?”, so, let’s see what the IRS has to say about that…

Earnings: Were you self employed with earnings more than $400.00?

If so, then chances are that yes, you will need to file taxes as being self-employed.

The next obvious question is what the IRS considers “self employed” to mean, they have an easy answer to that here, which invariably lead me over to the self employment tax section.

For those of us that are self-employed, we must pay SE tax and file Schedule SE (Form 1040) if our net earnings from self-employment were $400 or more for 2009. Check this page for more information on the self-employment tax.

I already know that I will be filing taxes this year, even if I don’t yet know what my full earnings were, so I’ll leave you to sort out if you need to file and I will move on to the next step in this walk along on filing taxes when self-employed.

In the words of Dolly Parton, it’s enough to drive you crazy if you let it.

So, for those [...]]]> I went looking for something on taxes for home based businesses and do you know what I discovered? It costs over $60 for even the most basic and cheapest software I have been able to find.

In the words of Dolly Parton, it’s enough to drive you crazy if you let it.

So, for those of us who just wish we could say we work 9-5 and know that running a business is more like a 24 hour a day, 7 day a week job, I am going to be sharing what I sort out here as I work on my own small business taxes.

All posts will be gathered under the “taxes” category.