How to properly disclose links to comply with FTC? How to avoid having your business shut down due to improper affiliate disclosure? Read on to find out!
Table of contents
Running an online business is a fantastic way to make money. However, everything you have built can be shut down in the blink of an eye. So you need to make sure you read everything here, so you do not get shut down.
If you run an online business and make money from affiliate links, reviews, or free products and services, you need to let your readers know about it, as required by the Federal Trade Commission (FTC).
The FTC’s rules can sometimes be confusing, so you need to fully understand them if you are in this type of business. Otherwise, the FTC will take action against you.
Failure to disclose properly can result in your business being shut down.
This article will cover:
- What will I cover in this article: What exactly is a disclosure?
- Why do I need to create a disclosure statement in the first place?
- What powers does the FTC have?
- Won’t the disclosure affect sales and profits?
- Do I have to make disclosures on every platform (e.g., social media or my blog)?
- Examples of disclosures.
What exactly is affiliate disclosure?
Do not let the word “disclosure” scare you. The definition of “disclosure” is “to uncover or disclose.” You need to disclose your affiliate links because of the FTC.
The FTC’s mission is to protect people by enforcing laws that ensure products and services are truthfully described online. You can check out the FTC if you’d like.
The FTC has established rules to ensure that customers and people who buy products online know what they are actually paying for, without unfair or deceptive acts or practices.
I’ll give you some examples of what is unfair and what are deceptive acts or practices later, so read on.
Why do I need to disclose the first place?
I am sure you are asking yourself, “Well, I am not the one actually selling the product. Why should I disclose the affiliate links in my content?”
The truth is that the FTC does not want people to be deceived. For example, anyone may install affiliate links that falsely imply anything about a product or service.
Here is a real-life example from someone named Ted:
Welcome to Ted’s amazing product reviews
Here is this amazing product that you can get 100% off by using my PROMO CODE “free.” Just go through my link: www.scaleo.io.
It sounds pretty harmless, doesn’t it? And it sounds like a great deal too! Who does not want a free product?
Well, the truth is that the coupon/promo code Ted has posted on the website does not exist. Ted is outright lying to you to get you to click on his link so that he can get a commission if you buy from this site later on.
Once someone clicks on the link, his computer stores a cookie, the cookie is a tracking mechanism by which the affiliate (Ted) receives a commission if the person (the customer) buys something within a certain period.
Now, if the customer buys and later finds out that the only reason he was made aware of the product was so that Ted could get a commission, he will be upset.
Because the customer originally signed up because they received a promo code that never worked, but they bought the product anyway because they believed everything Ted and his website told them. It’s terrible to do business this way.
Ted deceived his readers by telling them there was a promo code when there was none. He also lied by omission when he did not inform his readers that he would receive a commission if someone bought the product after clicking on his link.
When something like this happens, people get angry because they feel cheated, scammed, or ripped off. That’s just bad business, and that’s what the FTC is trying to prevent with its disclosure rules.
What power does the FTC have?
To put it as accurately as possible, the FTC has the power and ability to do anything it wants if you do not follow the law and the rules it has set for affiliate links.
For example, on August 9, 2012, the FTC announced that Google Inc. had agreed to pay a $22.5 million civil penalty to resolve allegations that the company violated the default settings of Apple Inc.’s Safari browser by placing tracking cookies and displaying targeted ads to users, contrary to Google’s explicit, public assurances.
This is a good example of how technology can be used to one’s advantage without consumers knowing. The FTC frowns on this sort of thing. I have heard online businesses shut down many times in the industry I work in.
The FTC has seized everything they own because they intentionally or accidentally violated FTC rules and regulations. In other words, the FTC can basically do anything they see fit. So it is important that you read this article in its entirety. Knowledge is power, my friend. It can also mean your business!
Will, not disclosure affect sales and profits?
This is one of the reasons affiliate marketers do not disclose their affiliate links. They preassume that disclosing affiliate links in their content will affect sales and conversions.
From my own experience, I can tell you that you will make more money if you tell people that they go through your affiliate links and that you will get a commission if they buy through your link.
Data and research show that exposing your links increases your income and commissions. You will appear sincere to your readers, and they will appreciate it. And if the product is really as good as you say it is, your readers will not care if it’s affiliate links or not!
Do I have to disclose this on every platform (e.g., social media or my blog)?
It can be time-consuming to put a notice next to every link (not to mention it looks clunky). There’s a better way. Many affiliate marketers place a small notice on pages that contain affiliate links. For example:
This content uses referral links. Read my disclosure policy for more information. See the Disclosure Policies page for a detailed description that explains everything.
This way, you do not have to include a separate statement for each page that contains affiliate links.
Actually, it’s too much to have an explanation next to each link. After a while, it can even be annoying. Besides, it seems like you are warning people not to click on the link if there is a notice text next to each link.
The facts: Readers are smart, and most understand that if you mention it once, it already means that your entire site has affiliate links on some pages. So it is unnecessary to include a block of text with information about every single link on the page.
Disclosure examples
There is no one-size-fits-all or standard format when it comes to disclosures. It depends on the content or the platform on which it is published.
With that in mind, I’ll give you some real-life examples that I and others have used to successfully disclose affiliate links.
Before that, however, I want to introduce you to the different types of platforms where you can publish your content with affiliate links.
1. Blog or website
Every website owner who wants to run an online business should have a blog; if you do not have one, you are missing out on the opportunity of a lifetime.
How can you put a notice on your blog without it coming across as too salesy or deceptive? Well, a simple notice that some of the links on your site are affiliate links is enough.
You can add “affiliate link” or “affiliate” next to the link itself so that visitors know it’s an affiliate link from you—more on this below.
2. Video
Videos are a great way to spread affiliate links, but you should not just post them in the description as most do on YouTube. Your YouTube video can be embedded anywhere on the internet, and if your disclosure does not appear on the newly embedded page, you can be held accountable.
It’s annoying, but it happens to even the best of us.
Not to mention that if you do not include the link URL in the video itself, your video can be posted elsewhere, and no one will be able to see or click through to your link.
The main point of creating a video is to make sure that people take your call to action. Therefore, it is best to place the link in the video itself. This way, no matter where the video is embedded, your link will be displayed.
The best thing you can do for your YouTube video is to simply state that people can go through your affiliate link and display the link in the video. If your video is posted elsewhere, you can make sure people know it’s an affiliate link.
I like to use Pretty Links to create my own custom links. This handy little tool transforms affiliate links like this:
http://www.amazon.com/gp/product/B0REN27U9U/ref=as_li_tl?ie=UTF8&camp=1789&creative=9115&creativeASIN=B0REN27U9U&linkCode=as2&tag=climonnet-10
into a link that looks like this one:
True bliss if you ask me.
Both links will take you to exactly the same page: the Amazon affiliate purchase page for a Samsung tablet. On the other hand, the second link is much easier to show in a video than the first. No one (even me) will be able to recall the initial link.
I strongly advise you to use the Pretty Links plugin on your website… It is indeed a lifesaver!
Download PrettyLinks Plugin (free)
3. Social networks (Facebook, Twitter, Instagram.).
It’s one thing to let people know you have affiliate links on your website, but letting people know on social media is something else entirely.
Why?
Well, for starters, unlike blogs or websites where you have an unlimited number of characters available, you have limited space when you post on some social networks.
Take Twitter, for example. You only have 140 characters available on Twitter when you post a tweet.
This means that for each tweet, you need to include the content of the message, the link (if applicable), some relevant hashtags, and a note that it is an affiliate link.
That seems like too much for a 140-character update, does not it? So how do you provide information on platforms like Twitter when you only have a few characters?
Simple: you can start your tweet like this:
Ad:
Sponsored
Or you can use these hashtags:
#Advertisement
#Sponsored
You can also put something like the following in front of your link:
Affiliate Link: _______
Sponsored link: ________
This takes up much less space than writing your full disclosure.
With other social networks like Facebook, you can use a little more space because you are not limited to such a limited number of characters as you are on Twitter.
Here are some examples of how you can post on Facebook, Instagram, or LinkedIn:
http://www.scaleo.io/affiliatelinik (Affiliate Link)
The “(Affiliate Link)” is more than enough to let people know it’s your affiliate. If you disclose all the information on a social network, it will scare people away.
A simple “(product name affiliate link)” is quite enough.
4. Newsletter and Autoresponder
In your emails and autoresponders, you can also include a simple “(product name affiliate link)” because, just like in social media networks, people’s time is valuable, and you do not want to spend time pointing them to your affiliate links.
You are wasting your time and that of the reader who needs to read a detailed description.
The FTC does not tell you how to disclose the information because the important thing is that you do. Disclosure, after all, means making the new or secret information public.
Remember, it’s not so important how you disclose the information, but how you disclose it in the first place.
5. Everything else
It’s really not hard to know when to disclose and when not to disclose.
And why?
Because it depends on whether you are using an affiliate link or not, if you do not use an affiliate link, you can give the link to the product page like this:
I have changed the text a bit, but it gets to the heart of the matter in a great way.
Let us take a look:
Please be aware that some of the links above are affiliate links. After clicking on the link, I will receive a commission at no extra cost to you if you make a purchase. Please keep in mind that I have personal experience with all of these companies and recommend them because they are helpful, not because of the modest commissions I receive if you decide to buy something through my links. Please do not spend money on these things unless you believe you require them or that they would assist you in achieving your objectives.
As you can see, this disclosure hits all the right points and lets people know they do not need to buy if they do not feel it will help them.
I love it when people do not just promote products to make money.
Conclusion
The challenge for most newbies in affiliate marketing is that they have a hard time disclosing their links because they are either embarrassed or think it will hurt their sales.
No one likes a scammer in the online world (as in the real world), and no one likes to be scammed.
I see people all the time trying to scam others and foist commissions on them, and I am glad the FTC is here to stop them.
I can’t imagine what would happen if there were no regulations in affiliate marketing. It’d be like the Wild West, where people would kill one other for no reason. I am glad the FTC is around, and you should be too because it helps you do better business.
Last Updated on December 8, 2023
