WSJ.com – Blog Buzz on High-Tech Start-Ups Causes Some Static — I write a little about this in an upcoming Inside Track. Essentially this is an interesting story about how some bloggers may be compensated for “advice” to be given to Fon Technology. Coincidentally the advice-giving bloggers all raved about the Fon Technology operation online. I’ve talked to PR executives about this sort of thing. As a marketing tool blogs have got to be a great idea. But not when it’s done like this. This is a botch. Geez. I think it will backfire as far as marketing is concerned because of the mediocre execution and what looks like basic corruption. Other bloggers who were not rewarded will go out of their way to slam FON I bet. This episode will set back blog PR and marketing efforts five years.

This situation is made to look worse by the fact that the bloggers will be financially compensated but the “terms have not been discussed.” This sounds as if they will get more money for doing more boosterism. It doesn”t sound as if actual “advice” is part of the deal. Well, that’s unless the advice consists of “Hey, I’ll pump it in MY blog!”

Read the article in it’s entirety. It’s interesting.

Ms. Seltzer says her comments weren’t influenced by any compensation she could receive from FON. She adds, however, that she “should probably add that [disclosure] at some point.” On their blogs, Messrs. Gillmor and Weinberger said they weren’t motivated by making money from FON. Mr. Gillmor added in an e-mail message that FON advisors are “among the most honorable people I know.” Mr. Weinberger, who wrote on his blog that “the advisors are being financially compensated, but we haven’t discussed the terms,” said the advisers were genuinely enthused about FON’s community-oriented plans. Mr. Varsavsky says no compensation agreements are in place yet between his company and the advisory-board members, though he plans to “make a proposal” that they get paid in some way.

related links:
Orlowski’s Take