Ethics watch: Yelp's sponsorship program
Recently, the San Francisco Chronicle ran a story about how Yelp had empowered local restaurant-goers and helped them improve several local eating establishments with their constructive reviews. One thing that caught my eye was the mention of Yelp's sponsorship program, where local businesses can pay for premier placement in Yelp's search results and "sponsor" favorable user reviews so they appear at the top of the list.
The sponsorship program has been around since early 2006, and many businesses have participated in it as a way to enhance their identity on the service. The sponsorship package includes an enhanced profile (slide shows and the aforementioned hand-picked review) and sponsored search results. As a Yelp user, I've seen both elements before and thought nothing of it. That all changed when I read about a disgruntled local business whose owner referred to the sponsorship program as "extortion," since it forces business owners to spend money to change how users experience their listing.
A random example of a restaurant involved in the sponsorship program. The sponsored review appears on top of others.
(Credit: CNET Networks)That business owner has a point. The profile enhancement element of the sponsorship program undermines the efficacy of Yelp's user-driven system. While businesses can't buy their way out of bad reviews, the fact that they can pay to put their sole five-star rating on top of a sea of bad reviews could be misleading to new users. "We're about promoting good businesses," explains Stephanie Ichinose, Yelp's director of public relations, "Overwhelmingly the majority of reviews you see are positive. People are trying to share...and we've taken this notion of word of mouth and put it in a positive light. What we can do on top of that is take businesses who are interested, and let them enhance it. It's not really any different from the Yellow Pages."
While Yelp's advertising site cautions business owners from reviewing their own establishments, there's nothing to stop a business from creating a dummy account, writing a few reviews, and then sponsoring one of their own--effectively rigging the system. Although doing something like that isn't as easy as it looks, "One of the things that's really hard to do is build a solid reputation with other yelpers," says Ichinose, "[faking] it would be very difficult."
Marketplace services like eBay have had premium paid features for years, but things change when a business reputation is on the line. Yelp's sponsorship program can be used to mask the community's opinion when community opinion is the whole point of Yelp. Though it's important for businesses to be able to respond to criticisms and compliments, the capability to effectively buy sponsorship on favorable content is ethically unsound, as it ends up misleading the Yelp user.
Yelp would not disclose how much its sponsorship packages cost beyond saying they were "affordable" to small businesses.
There's a fine line between advertising and content control. Yelp is treading in a gray area with its sponsorship packages. While paying for advertisements on a search results page is kosher, giving an edge on user reviews pages to businesses willing to pay is not. Yelp is a fantastic service that's steered me clear of some bad places, and it's helped me find new favorites. I don't want to see the site's authority diminished by a program that lets reviewed businesses manipulate their content.
Is this an issue for you? Let us know in the TalkBack.
Josh Lowensohn is an associate editor for Webware.com, CNET's blog about cool and otherwise useful Web applications and services. If you've found a site you'd like profiled, shoot him an e-mail. E-mail Josh.
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On the phone interview you too agreed that the review was clearly marked and never seemed like a problem (until you read the sensational Chronicle story).
Additionally you're suggesting readers of Yelp are dim. When someone comes to a page with 20 reviews do they stop at the first one and immediately decide to patronize the business? No - they thumb through a number of reviews to get a sense of how the business performs on average. Additionally, before the user ever even gets to that first review they've already seen the business' average rating and number of reviews - at the top.
The real point of this feature is for a sponsoring businesses to showcase a review they are proud of. Does it give them a tiny element of control and stability in an unpredictable review environment? Sure. Does it compromise the integrity of the community or the site? Not in the least - you weren't confused and it's all clearly marked. Here is an example so your readers can decide:
http://www.yelp.com/biz/xQip7O-KABOtzBb-an4MIw
To address your "game the system" question: We do have spam filters in place which screen reviews - positive or negative - which apply to all local businesses (sponsor or not) to prevent gaming.
I think you need to ask yourself whose side are you on the business or the consumer? The Chronicle leads it's story with a business claiming "extortion" that has 51 reviews and a 2 star average. What about those 51 unhappy customers that spent their hard earned money and were treated poorly? Yelp's sponsorship program couldn't have helped him or any other poorly performing business for that matter (until they fix the problems and get better reviews).
Yelp is word-of-mouth amplified, which means if you're a great business we can really help accelerate your growth and if you're a terrible business, well we'll get the word out about you too, but you'll probably not be thrilled about it.
-Jeremy, Yelp CEO
Now, I was at an obvious disadvantage due to competitors who had already established quite the reviews on Yelp (fair), and the competition was also a 'sponsored listing'. Now, I have contacted Yelp many, many times in the past to also become a sponsored listing (which would mean more money for them), however, they have replied to me with different excuses every time as to why I cannot become a sponsored listing - each completely unfounded.
Now if yelp is truly user-controlled & its function is to provide accurate, real-life results: It has failed. You see, I also have many, many reviews that have been removed from the site for no reason - they are 100% legit customers, and they are removing them! Some had many, many previous reviews and were active users.
Yelp is going to shoot itself in the foot for this one - remember that little site called myspace (or, one could use Yahoo & Google as an even better example) from back in the day? Well, it used to be a giant, but it is obviously clear that Facebook is going to be the winner of this battle - why is that? Legitimacy.
So yes, to make this clear once again: YELP REMOVES REVIEWS FROM LEGIT BUSINESS PAGES TO BENEFIT THEIR SPONSORED LISTINGS - now tell me this Jeremy: How does this benefit the user? Answer: It doesn't, it provides the customer with a business that is favored by your website.
Both Josh and I are Yelp fans and regular users. But we have a problem with the capability for businesses to sponsor good reviews. Not all users do the research into the reviewer. Personally, when I'm on the run and using Yelp Mobile (which is often), I just read the aggregate score and first review or two, and call it a day.
It is our opinion that allowing businesses to play in their reviews pages, even a little, is a grey area ethically.
-Rafe
Advertising and consumer reviews are both implied agreements with the consumer. The former says "beware, I have income riding on this, objects in the picture may, and probably will be distorted". The latter, consumer reviews, say "I am indifferent to whether this business survives or thrives, but here was my honest experience with it." Both sides have positives and negatives as consumer tools - but Yelp tries to join them in the belief that they're getting just the positives. Didn't work.
Advertising earned its sleazy reputation honestly.
"Oola Restaurant & Bar thanks Kristina R. for this review. This business is a
Yelp Sponsor" and they even have more details if you hold your mouse over
the message.
It doesn't get much clearer than that guys. If a business has an overall 1 star
rating and are 'covering it up' with a single 5 star rating at the top people are
going to see through it. You'll see the 1 star average well before you see the
single 5 star review.
Sensationalist journalism indeed.
Its model seems unique- the emphasis is social networking. But the reviews are
largely unintelligent and more personal blogging than a serious, informed
reviews. And to know about the sponsorship reinforces that view.
http://www.new-software.org http://www.turk3.org
As someone who spends hours on Yelp each day, I don't care who pays whom for what--it is after all a business--but it would just be nice if they invested some time/money into improving the search capabilities!
Here is my recent experience with Yelp:
1) Yelp allows an unfounded criminal accusation against my business in the formof a review to remain on the yelp.com pages.
This accusation of criminal action ( racial discrimination)is damaging our business.
2) I posted a negative commentary on this as a "review" of Yelp( the business) on Yelp.com , and it was removed by Yelp management within a matter of hours.
3) As retribution , Yelp removed several positive reviews on my business fromyelp.com
4) I had a conversation with a Yelp sales person who suggested that all thiscan be 'rectified' if I purchase Yelp for Bussiness Owners account.
Although when this mass execution occured, Yelp's business TOS states that business owners are encouraged to review their own businesses, as long as it's done openly. It appears that the TOS has recently been updated and Yelp has since removed the aforementioned clause.
Here's a link to Jeremy Stoppelman's personal Yelp page. Who's a business owner himself and has over 700 plus reviews.
http://www.yelp.com/user_details?userid=nkN_do3fJ9xekchVC-v68A
Here's also the link to the Yelp talk thread in reaction to Yelp's recent decision:
http://www.yelp.com/topic/san-jose-um-***-happened-to-my-ladies-chrystal-b-and-cindy-s
Ellen Lee,Anastasia Ustinova, Chronicle Staff Writers
Friday, July 4, 2008
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/07/04/BUFU11IP6J.DTL
Here in the Boston area, I heard about Yelp through friends and being a very small business who tries to save money, read their Terms of Use which seemed fair. The Boston Terms allowed an owner to put a profile out about their business as long as the owner identified themselves as the writer of the piece. So I did that.
In all the time that I have been out on Yelp-Boston, I have received 5 reviews written by Users who have visited my establishment www.energiesfromsource.com and enjoyed their sessions. I also received one so called review from Alexis of West Roxbury. She was unhappy with a phone conversation that we had. In it she used profanity in caps. Like razzlips from San Jose, I could not get Yelp's help line to remove the 'review.' Also, Yelp removed all positive reviews from the site and put the review from Alexis in a Featured Spot. Who is it that allows a negative review to be featured over and over and removes positive reviews and also communications from me the owner to be seen by the regular viewers at this site? It seems quite unfair and the Yelp Help line is no help!
Yelp is a real piece of work. The other part of the story that is not being told is the process that yelp use to thin out reviews. Yelp uses an algorithm that thins out a business' reviews. An example is that my catering company had 14 reviews four months ago and they have been thinned down to 6. In an attempt to find out why from the sales team I was informed that I could pay for my listing and then they would allow more reviews to be posted. if that is not extortion than what is? If you are a small business that had fewer clients, and thus fewer reviews you are penalized. A larger company with more clients allows for more reviews which create a greater presence and word of mouth buzz. Completely unfair ! I also agree that the ceo is starting to realize that he may be seeing more and more lawsuits from disgruntled business owners who feel that they are being squeezed for protection money by a virtual mafia. Keep this story alive and maybe we will see some change.
My business Energies from Source Healing in Jamaica Plain, MA is being penalized just like yours is. Yelp-Boston keeps putting up a fake review that stems from a phone conversation with a potential client. They took down my comments regarding this review and keep putting it up as a Preferred Review. Who prefers it? I have already consulted the MA Attorney General's office and a large law firm in the Boston area.
This law firm says that yes, Yelp is covered under the Good Samaritan law for 3rd party content but NOT IF IF it can be proven that their Sales People are trying to EXTORT money from small businesses THEN it is possible that a CLASS ACTION SUITE could potentially be filed against them.
Maybe all of us small businesses should try to unite. I signed up in good faith with YELP but they are not acting in good faith.
This morning Yelp still had not put an end to the horiffic converstaion. We flagged it again and let Yelp know that we would not be a patron to any business that sponsored them. Still no action was taken. It appears now that no one else is engaging in the conversation. Most of the members partaking in this vile conversation were titled as Elite members of Yelp. This is such a sad commentary on how unethical Yelp can be. They obviously care more about keeping the reviewers happy (this is how they make money off of them). Than a human being that was obviosly in turmoil on their site. This is truly a new low.
For the above comment. I was curious and checked it out. I'm truly speechless and agree that Yelp should have ended the conversation. The one individual that goes by: Joe"El Dorko"C., is an attorney and teaches law in San Francisco. Interesting that he added to this 20 year old students turmoil.
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by mssy
August 16, 2008 1:07 PM PDT
- Great Post.
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Reply to this comment
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See all 23 Comments >>For the above comment. I was curious and checked it out. I'm truly speechless and agree that Yelp should have ended the conversation. The one individual that goes by: Joe"El Dorko"C., is an attorney and teaches law in San Francisco. The 20 year old is a student.