I am a really big fan of Blog Talk Radio and have met Alan Levy, John Havens, Lisa Padilla, their newest addition, Kris Smith, and have spoken to others in their organization. They are a bunch of great people. They have a super application that is easy to use, is free for its users, and overall they have allowed me to have a radio/podcast show where I otherwise would not have had the ability or technology. I can use something I am familiar with using, my computer and my phone. I have done numerous shows on Social Mediasphere Radio and on Blog World Expo Radio and have praised them at every step.
This is why it will be difficult for me to shell out some harsh criticism now. It is more than a small matter to me. The have moved to their next level of “monetization” of their application. After all, companies must make money and this is new territory still and companies are working hard to figure ways to get into the black. I know first hand of companies that are making this a priority for 2008. There has yet to be a surefire way for people to do this besides the obvious, advertising. Blog Talk Radio is no different.
I received this email from Frank Neill, Director of Advertising, today that indicates that they are moving into this next phase of monetizing their application.
Dear Host,
Thank you for being such an important part of BlogTalkRadio. BlogTalkRadio just recently passed 52,000 shows since we launched the company in the fall of 2006. We have created a community of thousands of hosts and millions of listeners. And, through the RevShare program, we are all in this together!
Obviously I am not the only one that loves the program and their system.
In January 2008, we launched a RevShare program where our hosts have an opportunity to participate in the revenues earned from advertisers. If you have not yet joined our RevShare program, you can do so by completing the RevShare form located at [link omitted].
I am always happy to earn money from my efforts and if a company is using my content and my participation to earn that revenue, I think it is actually only fair that they offer me a piece of the pie. But this is where the email turns south for me.
RevShare hosts will earn 35% of all revenue for advertising from their shows, and they can earn 50% of revenue from their sponsors that they bring to BlogTalkRadio. With our RevShare program in place, participating hosts will earn money for downloads and page impressions they generate. Keep in mind that BlogTalkRadio will serve ads on your show even if you have not opted in to the RevShare program. [emphasis added]
Big scratching noise across the LP for that last sentence. If I’m to understand that paragraph, I can opt in to be paid for my content on Blog Talk Radio and they cay earn money and I can earn money, but if I don’t opt in to the rev share, they are going to put ads on my content whether I like it or not. Huh? What if I don’t endorse the product that is being advertised on my content? Perhaps I have a religious, political, or moral reasons I don’t want to have a certain company using my content for their gain. The tone behind it is one that is difficult to swallow as well. “We’ll do it whether you like it or not.” I know that was not the company intent. A conversation with John Havens confirms it was in no way the company’s position.
The email goes on to say how they will be paying out for the revenue earned, and then talks about some ads already in place for “Run In Network” ads that run on all shows. Examples given are “LifeLock, AccuQuote, Rosetta Stone and Internet Speedway.”
What if I don’t want Internet Speedway showing up on my content. What happens if I am a direct competitor of theirs? I have no control over their being splashed across my Social Mediasphere show? I don’t endorse or approve of their business, but I am now forced to accept that forced endorsement?
To me as a business owner it is unacceptable. Would I pay for ads not to appear on my shows or would I pay for a “pro” account” to control my own ads? I probably would given the benefits I am receiving, but to put an add on my show that I do not endorse or don’t want is madness. John made mention that this may be an offering that will later be put into place. Yes, growing pains are just that, painful.
I have spoken to John Havens at Blog Talk Radio for comment about this and as always he is the very professional and asked that I speak directly to Frank Neill the advertising director. I will certainly post a follow up to that conversation. I’m also about to scour the terms of service as it may reveal something I have missed. I guess I don’t often rant about things here so this is new ground for me, but I guess I should ask, “Am I making a mountain out of a molehill?” How about suggestions for the team at Blog Talk Radio?
UPDATE: If anyone had any doubts about how cool the team is at BTR, check out their response from Frank Neill in the comments here. I also want to reprimand myself for forgetting to change the title here after I spoke the first time to John Havens. I changed the content but forgot the title. I wont change it now but I think more appropriate title should be more like “Blog Talk Radio Enters Monetization and Learns How Hard It Can Be To Make A Buck.” My hat is off to them as they give away the cow and try to sell the milk to their users. I think a new post is now forming as well. Are we too used to getting things for free?
WoW! Seems like a step backwards for them.
I’m not completely passing judgment just yet Paul, and I am waiting for a response from Frank Neill. I just think it is a hard nut to crack when trying to monetize. Making advertisers happy and making we content generators is never easy, and almost impossible. This is just a bump in the road. They will figure ways to get into the right line.
Not passing complete judgment just yet Paul as I am waiting to hear back from them. Monetizing is hard for companies. This is just a blip on the screen I think until they get a chance to make some adjustments to feedback.
Jim,
As you indicate in your first paragraph, BlogTalkRadio is free - both for hosts and for listeners. We have created a platform where anyone with a voice can be heard and listeners from all over the world can tune in - all at no cost to them. The response has been fantastic with over 4,500 hosts creating more than 7,500 original shows per month…and, growing rapidly.
Obviously, this costs money to run - upgrading servers to keep up with growth, paying a staff to develop and improve the website, hiring host support to ensure a positive experience for all. And, as with most industries that provide free content, advertising foots the bill.
We have taken the approach of sharing all of BlogTalkRadio’s revenues with our hosts in order to further develop the sense of community and feel that it is more than fair…At least 35% of every dollar we make from advertising will go back to our hosts. Most of the hosts I’ve spoken to are thrilled about this and fully support the RevShare program. However, for those like yourself, the next step in our evolution, which will be announced shortly, is a paid model where hosts can opt-out of advertising entirely.
Also, we are very cognizant of conflicting messages and not forcing advertisers on our hosts. If a host has a philosophical issue with a particular advertiser or if there is a conflict, we will remove that ad. Just last week I was contacted by a host who does a show about the Islamic faith. He did not want music in his ads as it goes against his beliefs. Upon his contacting BTR, the ad was removed within one hour.
We stand by the benefits of our RevShare progam and the service that we provide to our hosts and our listeners. And, as we continue to grow - in audience and revenue - our hosts will benefit and grow as well.
Frank Neill
Jim: I understand and am also glad to see Frank Neill responding quickly. It appears they understand Customer Service, and that’s a good thing in this day and age.