Wednesday, May 12th, 2010 at
1:52 am
January 8th, 2010
First off, I’d like to let readers know that this post has been in draft status for almost eight months. So please excuse any anachronisms or poor idea flow…but hopefully I’ll be able to tie things together in a cohesive and insightful way
I’ve paid attention to Yelp pretty much since its inception, admiring its growth from afar and debating its potential to either disrupt or expand the customer base of the average small business owner. But ever since my former hometown weekly, the East Bay Express, published its controversial “Yelp and the Business of Extortion” column last February about the purported tactics of some of Yelp’s sales representatives, I’ve taken an even keener interest.
The Express’s Kathleen Richards interviewed a handful of business owners who claimed that Yelp sales reps had offered to take down negative reviews in exchange for advertising, and some who were even threatened with negative reviews if they did not advertise. Naturally, Yelp decried the report and defended its practices. And despite a follow-up story in the New York Times about Yelp’s “power to make or break a restaurant or small shop,” it remained unclear exactly what had happened. This wasn’t the first story that suggested Yelp’s sales reps were pursuing some questionable tactics.
Paul Smalera of Slate / The Big Money was skeptical of the anonymity of Richards’ story, rightly asserting that “Yelp is simply a different animal than most merchants are used to dealing with.” He asked business owners and Yelpers who had a beef to share it with him for publication. While he did find Yelp engaged in high-pressure sales tactics and its review filter deleted some legitimate reviews (more on this later), he didn’t find evidence to support Richards’ extortion claims.
But, where there’s smoke, there’s usually at least some fire…how much of it was business owner confusion, how much was algorithmic, and how much was over-aggressive sales? If one of the smartest guys in tech didn’t know for sure, I sure don’t either. My guess is that there were some misleading or commission-hungry sales reps who’ve since been re-trained or re-assigned, and perhaps the throttle on Yelp’s review filter might have been set a little too high in the Spring.
The fact that Yelp was even a “target” of this kind of coverage signaled in some way that it was now a force to be reckoned with–as Greg Sterling pointed out. Companies like MerchantCircle have been using underhanded sales tactics for years, or at the very least, “struggled with execution” in exactly the same manner as Yelp, and have not yet garnered media attention for these tactics outside our little SEO community.
A Noticeable Change in Mindset
CEO Jeremy Stoppelman’s quotes from the New York Times article above…
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