The Freelance Bookkeeper

On December 1, 2009, recent changes to the Federal Trade Commission Act affecting online marketing, blogging and advertising will go into effect. The expanded regulations affect every US-based individual and business that sells or recommends products and services on the Internet. So if you have a website for your freelance bookkeeping business (and you should) or post on social media, you need to know about this.

What’s it all about?

“The original FTC act ‘prohibits deceptive and unfair acts or practices in commerce and misleading advertising of drugs, foods, cosmetics, devices and services,’ and these prohibilitions apply online and offline,” explains Richard Cleland, Assistant Director of the FTC Advertising Practices Division in a recent online interview.

The new guidelines expand on how the regulations apply to online marketing. With the ease in posting recommendations for third party products and services, such as using Amazon affiliate links, this change affects nearly everyone who has any kind of commercial dealings on the Web.

In which situations does it apply?

Specifically, the new rules apply to anyone who posts on a blog or website using affiliate links or where customer testimonials are used to sell a product or service. Any kind of reviews or recommendations online where compensation is involved are also included.

The fact that there is compensation involved now must be plainly disclosed. Where testimonials are involved, average customer results must be disclosed. It is no longer adequate to state that “your results may vary,” as has commonly been done by many.

What to do next

Since the new regulations go into effect next week, if you have a website where you use testimonials or affiliate links, you should figure out what needs to be revised on your blog(s) and/or website(s) to bring them into compliance and avoid getting snagged by the authorities. You may also have to change the way you post information with commercial connections on Facebook, Twitter and LinkedIn.

The rub is, the new guidelins are not especially clear on how they specifically apply to some situations. So the best advice is to check out the information available on the FTC website itself. I’ve also included additional resources below, including an interview just released this week by online business expert, Jim Edwards, and FTC official, Richard Cleland, which includes real life examples of online advertising and how the requirements for disclosure apply.

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Resources

The official FTC guidelines that take effect on December 1st.

Jim Edwards interviews FTC Official for clarification of the new guidelines

Interpretation of FTC guidelines by an Internet lawyer

How to use the new guidelines to your advantage with testimonials

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Have you heard all the hype about using social media to market your business online? How much of it is hot air and how much of it is true? Is it worth the time (because that’s what it really costs) to get out and mingle online?

These are questions I’ve been investigating myself. And this video is something that got me to start paying closer attention.

Social media is definitely not a fad – but how can we use it to help grow our client base as freelance bookkeepers?

First, we must remember that the basis of social networking is relationships. It’s about connecting with people, not selling your services directly. It’s attractive because it’s social and interactive, not to mention fun. It’s about everyday life and connection.

The reason that social networking does makes sense from a business standpoint, however, is that wherever people tend to gather, conversation often turns to asking for recommendations when in need of products or service…or discussing what’s new, what’s been happening at work and at play, including unsolicited testimonials about products and services. Social media fosters powerful word-of-mouth referrals in a natural, softer sell platform.

Careful! It’s a Double-Edged Sword

While everyone loves to buy, they hate in-your-face sales pitches. That’s a no-no in social networking. They also don’t like to be manipulated. So if you try to work the system, the smell of sleaze will come through and hurt your reputation big time. And of course, negative gossip spreads like wildfire online!  So don’t give them a reason to spread the wrong message about you.

To make social networking work in favor of your business, you have to be a real person and build real relationships. If you hate the direct approach to selling your services, however, then this is music to your ears.

All you need to do is be conversational and enthusiastic in a genuine way about what you do and what your company has to offer. The idea is to attract clients and prospect. Not to sell directly to them. Telling stories about how you’ve been helping others is a great way to do this. (Just make sure you don’t disclose anything confidential!)

In time, social networking automatically builds your expert status and your brand using your name and face. Everything you do online will ultimately reflect on your image. So also be aware of the inherent transparency of your interactions online. Because you never know who’s watching you and the lines between personal and business will blur, make sure you don’t post anything you don’t want everyone on the planet to know.

Social Media Is Not a Marketing Quick-Fix

You will not build your business overnight with social netowrking. It takes time to build relationships. And social sites like Facebook and Twitter can suck a lot of your time without you even realizing it, if you’re not careful.

To make it work, therefore, schedule a set amount of time to spend consistently on your social marketing efforts. And be disciplined about it.

Similar to in-person networking, you need to do it on a regular basis. But the rocket fuel is that online networking has a much wider reach. So, if you work virtually with your clients like I do, this is an especially important tool in your marketing toolbox.

So far my conclusion is that social marketing does indeed make sense, when kept in it’s place. It appears to be an important, cumulative way to help stabalize and grow your business over time. But because of its seductive, time-consuming  social nature, discipline is needed to keep it productive.

I’ve been planning 30 minutes a day, and so far, the results have been good. Fostering solid relationships on a regular basis is what builds word of mouth referrals. And referral sources are a key to long-term success as a freelance bookkeeper.

I’m still learning how to hone my online marketing skills, so I’ll keep you posted as I learn the ropes more thoroughly. But here are my best suggestions so far:
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1. Be clear on who your target market is (Ideal Client) and find where those people hang out online. Then join in the conversation, being willing to share helpful info to build your expert status.
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2. Start with just one or two social networks, and grow from there. Twitter is the easiest place to start.
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3. Be yourself, but stay professional. Focus on building relationships and adding value. Don’t be afraid to let folks know what you do in a conversational rather than salesy way.
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4. Make your time count by setting a schedule and sticking to it.
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5. Track what you are doing and what the results are. Do more of what’s getting the best results.
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So if you haven’t jumped on board with social media yet, it’s time to get your feet wet and get some exposure and brand recognition online. The best way to learn how is by doing.

Have you already been using social media with good results? Let’s hear about it!

What tips can you share on the best way to build relationships and spread the word about outsourced bookkeeping services through social networking?

Leave a comment below and let’s get a productive conversation going.

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Gabrielle
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Resources

How to Market Your Busienss with Facebook – NY Times

Twitter Guide – courtesy of makeuseof.com

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