NOTE:  I had an awesome time at Social Media Dev Camp last weekend!   As soon as I get some source footage, I will post it on my blog and various social networks.  Also, if you haven’t checked out Scott Bishop, I am STILL blown away by our co-hesiveness during the presentation.  We were put together in the last second, and I’m humbled by the fact that we share the same values in our Social Media spaces.

Check out his blog http://realtimemarketer.com/ and his Twitter http://www.twitter.com/thescottbishop

This blog post is going to expand on some of the points that I made during the presentation.

There was an article that brought a smile to my face.

The company behind FarmVille and Mobster Wars had a bit of a challenge to their conscious, relying on ‘scam and spam’ opt-in adverts to generate revenue. I already had apprehensions playing ‘online games’ to begin with. For a few reasons being the lack of professionalism it displays on your facebook feeds, and two the lack of experience it provides it’s users, along with bucking the trends! I knew inherently the goal was to entice players / users with free offers or some kind of validation (i.e. I beat your ass at this game, and all of your friends know you’re a wuss!) in hopes to bait them for advertisers. Even the early games on facebook relied on using the fabled ‘viral effect’ to exchange value after inviting 15 friends to play this ‘game’. The game itself becomes of no value to it’s users, because it’s diminished by the true premise of developing a warm market for Advertisers.  Casinos (slot machines), Strip Clubs (look but don’t touch!), MMORPGs (to an extent) all use this tactic to generate revenue.  Except, in the online world, when people tune out of the banner adverts or counter-program them (adblock them), they get desperate and become more pervasive.   Providing users with an opportunity to opt-in advertising in exchange for in-game currency to me is a violation of ethics, not to mention moral grounds.  Not even World of Warcraft does that, and it’s one of the most addictive games on the planet!

My proof of this? The reaction of the heads of these various outfits in response to being questioned. They respond in anger, which tells me that at some level, they know what they are doing is wrong.  They wouldn’t want to be treated that way as a consumer, but quick cash and a viable excuse “well, they were stupid enough to buy it anyway” to me is not a viable business plan.  It amazes me that regardless of the potential liability, people are still trying to find a way to separate fools and their money using Social Media, when there is nowhere to hide once the damage has been done.

I would like to point out that regardless of case studies and stories of people looking to the number of ‘eyeballs’ on Social Media as an opportunity to sell CRAP as opposed to engaging with them has dire consequences.  These people and businesses do not last long.  From the Spam Kings of the AOL days, to the myspace invaders of the 90’s, they have all been caught, and their effectiveness diminished.  While we can’t provide a user guide to every user on every network, there should be a zero-tolerance policy regarding this kind of behavior.   Social Networks need to remain vigilant and stop these people, regardless of the money involved, because the damage to one’s reputation to me is far greater than any amount of money that could be received.  I sure as hell would not want Facebook to become the Myspace of the new millennium.  Although, as trending seems to show, younger generations are already wisening up to this fact and beating us to the punch.

Even scarier, the game changer might come in the form of the Federal Trade Commission changing the rules for endorsements and advertisers.  In attending Daliah Saper’s presentation during Social Dev Camp Chicago this weekend, I remember distinctly a question from the audience, asking “How is this going to affect affiliate marketing?”  I’m sure the people on the borderline of ethics are scared out of their wits. Read More Here about the FTC.