On October 13 of the year 2010, Jeff Walker published a blog post titled Injecting Poison into Your Brain. Given the timing of the post (just 9 days after Salty Droid published his most popular post ever, Syndicate Shit Storm), it was clearly an effort to marginalize and deflect the criticisms leveled by Salty Droid and his readers.

Originally, I wasn’t planning to address the post — even though I found it to be quite manipulative. But then I changed my mind when I saw a couple hundred uncritical comments and a few different blogs encouraging people to go read Jeff’s post. Therefore, I feel it necessary to bring some perspective to what I see as a mostly one-sided, unbalanced discussion.

Let’s get started:

Jeff’s “damage control” post begins by describing an ordinary continental breakfast in an ordinary hotel where families are watching the morning news. He writes:

On the “news” show they kept showing a “news story” about a robbery of a convenience store… and the story featured a video clip from a security camera — the video showed a thug holding a gun to the terrified clerk’s head while he screamed that he was going to pull the trigger.

It was a horrible video. It literally made me sick to my stomach.

Keep in mind, security camera footage is usually low-resolution; movements are jerky, details are hard to make out. Also keep in mind that your average security camera only records images — no sound at all.

So, let me ask you a question:

When was the last time you were walking through a hotel lobby, saw a grainy and soundless clip of a guy robbing a convenience store, and then “literally got sick to your stomach.” Methinks Jeff Walker has a very weak constitution… or he’s embellishing the story to manipulate you.

Poison In, Poison Out?

Jeff Walker writes, “If you put poison into your brain, you’re going to get a bunch of poison coming out of your brain.”

Of course, this is just a rehash of the old “garbage in, garbage out” theory. Works for computers, but not so much when we’re talking about the human brain.

Your brain is not a simple computer that unquestioningly runs whatever programs are fed into it. It’s a complex organ that can process, filter, and analyze information in nanoseconds. It also has the ability to identify and reject “garbage.”

Perfect example: I used to work in a snowboard shop. My co-workers cursed constantly. If Jeff’s theory is correct, I should’ve been cussing like a roofer within days. But I wasn’t. I worked there three years. Never adopted their language. Still haven’t adopted it to this day.

So poison in, poison out? It’s an overly simplistic theory, and a weak one at that.

For a more accurate view of how the brain operates, I prefer Brian Tracy’s observation: “You become what you think about most of the time.”

How you react to input has a much greater bearing on your life than the mere content of what you’re exposed to.

Cult Tactics 101

Jeff advocates drastic measures if friends or family don’t fully support what you’re doing:

Always protect your confidence. If people are tearing you down, then you need to avoid them. This can be tough if it’s your family, but you need to set boundaries. You need to create distance. And if your friends are tearing you down, it’s time to find some new friends.

I am mostly in agreement with the idea of limiting negativity in your life. I agree it’s good to focus on the positive, to see the good in bad situations. I also agree that you shouldn’t pay much attention to naysayers — the types of people who casually dismiss your efforts by saying “that’ll never work.”

But I wouldn’t go so far as to say you need to cut yourself off from friends and family. As Salty Droid points out on his blog:

And thus did Jeff Walker illustrate the chilling tendency of “Internet Marketing” “Gurus” to cross freely into the oh so murky water of cult tactics.

Cults — including some popular religions and network marketing organizations — will give you similar advice about “negative” friends and family members. They know that the fewer dissenting voices you have in your life, the more easily manipulated you will be. And the more easily manipulated you are, the greater access they will have to your mind — and your wallet.

My advice: Keep your friends and family close.

And if a friend, family member, or even an acquaintance says, “It won’t work because…” — and then offers a valid reason — it’s time to pay attention. As I shared in my story about how I lost $30,000 on a dumb business opportunity, it is sometimes to your advantage to heed the so-called “dream stealers.”

Sycophants Only, Please

Jeff seems to believe the secret to business success is surrounding yourself with sycophants. That way you get a positive one-sided view of everything you do. How convenient!

Personally, I believe it’s important to always examine both sides of any argument. If I hold a view of intelligent design… and my opponent holds a view of random mutation (evolution)… then I better have a thorough understanding of the arguments for/against evolution. In fact, it would be foolish to try to enter any kind of discussion if I don’t understand my opponent’s position.

But Jeff believes that by examining contrary opinions that you are somehow injecting poison into your brain.

Hmmm… I thought that was just being well-educated.

Only Idiots Don’t Buy from Jeff Walker

Of all the points Jeff makes in his blog post, this is the one that angers me the most:

If you’re getting attacked by critics (who usually have no experience or are abject failures), then the best answer is usually to ignore them. Don’t visit the places they hang out. It’s that simple. In general, the people listening to them are not your clients or prospects.

It’s almost like an intelligence test. The people who are stupid enough to listen to the bile and hatred are not intelligent enough to be your clients.

Read that last paragraph again… it’s important.

There are at least two things going on here:

1. Jeff is using an ad hominem attack to dismiss legitimate criticism. Instead of addressing the criticism directly, he calls it “bile” and “hatred.” There is nothing I dislike more than lazy ad hominem judo. Anybody can do that.

Customer: “Jeff, I’ve been a little bit concerned about what seems like blanket endorsements of all of your buddies and all your buddies’ products.”

Jeff: “You’re just a jealous hater! I feel sick to my stomach…”

2. Even worse, Jeff indirectly says that if you don’t buy from him, you’re stupid!

Or, said another way, if you’re going to approach a sales pitch with skepticism and actually examine both sides of the (sales) argument, you must be an idiot and therefore do not qualify to be Jeff’s customer.

All of which raises a question I’ve been pondering for a few weeks now: Since I bought the original Product Launch Formula course… and… the Product Launch Manager Training… and… I read opposing viewpoints in an effort to be well-educated… what does that make me?

(I’ve personally spent about $4,000 with Jeff. I also read Salty Droid’s blog as well as other blogs that aim to protect consumers. Am I an outlier or just one of many examples that shatters Jeff’s logic?)

Clearly, Jeff must have been confused when he wrote his blog post. It’s not only strangers and outsiders who are reading Salty Droid’s blog, many of them are Jeff’s own customers — real people… who’ve spent real money… with him!

The bottom line: Jeff’s “poison post” was really just disingenuous damage control and a backwards attempt at flattery to get you to buy more of his stuff. Did it work? Judge for yourself.

-Ryan M. Healy

P.S. Do you think Jeff will still feature me on ProductLaunchManager.com as he promised in his sales letter? After all, I did pay for it. (After nearly a year of waiting, the directory was finally made available to his customers in early November 2010.)

P.P.S. As I’ve said before, I like the product launch model and have run some product launches myself. They work. This post isn’t a criticism of product launches or Jeff as a person; it is a criticism of Jeff’s blog post.Similar Posts:

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Are Internet marketing “gurus” just a den of thieves? And is Internet marketing itself now on life support as a result of their unethical business practices?

The reason I ask these questions is because recent events have forced me to ask them.

Internet marketing “gurus” are being called out left and right, new advertising rules are going into effect, people’s merchant accounts are being terminated without notice — it’s probably the biggest shake-up to hit Internet marketing since the first big “Google slap.”

Let’s take a look at some of the “recent events” I’m talking about:

Event #1: Perry Belcher “Retires”

Here’s the short version: Perry Belcher sold fraudulent health supplements through his company called Selmedica. When it was discovered he was committing fraud, authorities seized Belcher’s assets, auctioned off his home, cars, and other possessions, and gave him a 10-year probation.

In what appears to be an attempt to side-step the terms of his probation, Belcher partnered with Ryan Deiss to promote products on the Internet again. “Get Money from Google,” “Social Media Blueprint,” and other programs followed.

But after much dogged persistence by Salty Droid, Perry Belcher pulled the plug on all his online businesses, deleted his Twitter account, and announced his “retirement” from Internet marketing. (Or, more accurately, forced retirement.)

Event #2: Eric Graham Fails to Deliver

Eric Graham is known as the Conversion Doctor. He helps people improve the conversion rates of their web sites. In the past, I’ve been impressed with Eric, and even went to an event in Denver specifically to meet him. (That’s where I got the picture at right.)

Anyway, I was surprised to learn that over the last year or two that Eric has continued to make big promises, but — according to the testimony of multiple customers — has not delivered fully on those promises. Worse, he has denied refunds and not honored his own guarantee, which he features prominently in his sales process.

I wouldn’t even have been aware of these issues had not Fred Black written in detail about his own unsatisfactory experiences with Eric Graham. I respect Fred and his work, so I take this issue fairly seriously.

Turns out, Fred is not the only one who’s spoken out against Eric Graham. There seems to be a pattern of negligence. “By the mouth of two or three witnesses every fact may be confirmed.”

Event #3: StomperNet Descends into Chaos

Ken McCarthy (an Internet marketer who has my utmost respect, by the way) introduced Brad Fallon to the Internet marketing community back when I still had a job.

I bought the first “Stomping the Search Engines” program, listened to it in my car, and used what I had learned to build a site that’s been cranking out $20 to $70 a month for more than five years now. The methods described in the program worked for me, so I thought highly of Brad — at first.

Well, Brad went on to partner with Andy Jenkins and formed StomperNet. They did a big launch, claimed to make millions — and from the outside, everything looked peachy.

Here’s what I found interesting: With the exception of giving Brad Fallon his initial credibility, I don’t think Ken McCarthy ever promoted him again. I had always wondered why.

Now I don’t wonder so much.

Andy Jenkins (no saint himself) ended up suing Brad Fallon. They haven’t paid affiliates from the first StomperNet launch. And now Brad has sued his own wife (Jennifer Fallon) over ownership of their wedding favors business. (Oh, they’re getting divorced, too. No surprise there I guess.)

And just so you know I’m not making this stuff up, you can read all about the StomperNet shenanigans on Salty Droid, links to legal docs included. (Warning: Strong language.)

Event #4: New FTC Rules Go into Effect

On December 1, 2009, new FTC rules went into effect. As you may know, these new rules were a backlash caused by “flogs” — fake blogs — being created and multiplied by certain Internet marketers.

The new rules say that if you feature testimonials that include specific results, then you must also prominently describe what “typical” results are. Disclaimers like “Results not typical” are no longer sufficient.

For an in-depth review of the rules, what they mean, and how you should respond, I recommend listening to the Easy FTC Compliance Seminar posted on Robert Skrob’s blog. (There’s also a handy PDF download in case you prefer to read.)

Event #5: Visa & MasterCard Crack Down on Merchants

On January 14, 2010, I received notification from PowerPay (my merchant account provider) that Visa and MasterCard is cracking down on what they consider “brand damaging” business practices.

Behind the scenes, Visa and MasterCard provided merchant account providers with a master list of “worst offenders.” Merchant account providers were told to immediately terminate the merchant accounts of these worst offenders — or face $100,000 fines per infraction.

As you can imagine, faced with $100,000 fines, merchant account providers acted swiftly. And a client notified me on January 16 that the merchant accounts of four major Internet marketers had been terminated. (It’s probably no surprise that three of the four have been targeted by Salty Droid.)

What Does It All Mean?

First of all, let me say that I think there are many Internet marketers who’ve crossed the line and should not be followed, supported, or endorsed. Enough is enough.

Let me also say that I believe there are many ethical Internet marketers who deliver fair value for a fair price — and do not engage in high-pressure sales, deceptive marketing methods, or the outright fraud I’m now aware of.

What this means is this:

• You must choose your mentors and teachers in the online space wisely.

• You must be especially wary of outrageous, hyped-up claims. (If it sounds too good to be true, it probably is.)

• When possible, you should get a second opinion from someone you trust when you’re tempted to spend a large sum of money for an event, coaching program, home study course, etc.

• And, possibly most important of all, you must protect your reputation. Because, in the end, your reputation is the most valuable asset you have.

Internet marketing is not going away. The Internet will continue to be a marketing medium. But how that medium is used will most definitely change — possibly more dramatically this year than ever before.

Ultimately, I don’t think there’s any reason to panic. But you should certainly be proactive about complying with the new rules and making sure you’re dealing with reputable online business owners. (This advice is as much for me as it is for you.)

Really, it all boils down to these three things:

1. Guard your mind.
2. Guard your wallet.
3. Guard your reputation.

Simple, for sure. But as most principles go: easier said than done.

-Ryan M. Healy

P.S. So far, my 4th business prediction for 2010 — “The End of the Internet Marketing Guru as We Know Him” — is happening a LOT faster than I expected.

P.P.S. Would love to get your comments on this post. Were you already aware of these issues? How do YOU think all these changes and revelations will affect Internet marketing?

P.P.P.S. In case you are interested, here are the new merchant account terms as spelled out by Jud Smith of PowerPay:

PowerPay cannot accept merchant applications for products and/or services employing “Negative Option” enrollment, in addition to the following practices:

Marketing models that employ “Free-Trial”, “Deferred Billing” and/or “Shipping Only”. Customers must be receiving a tangible good or contracted service in exchange for charging of payment cards. Incentivized discount offers are acceptable when the cardholder is receiving something in exchange for payment, however we will be unable to support accounts engaging in hidden or delayed charges and ‘free’ offers that are not truly free.

“Cross-Selling” and “Up-selling” business practices. All sales should be directly between the business entities (merchant) processing the transaction and the cardholder, with cardholder authorization for all purchases.

Per Payment Brand guidelines, the use of multiple merchant accounts, billing descriptors and merchant processors may be viewed as an attempt to avoid chargeback monitoring programs and is prohibited. Perceived non-compliance has led to termination of processing relationships. PowerPay will review the business consideration for opening multiple merchant accounts to ensure compliance with Payment Brand guidelines.

Transactions generated from internet traffic and all other lead sources must be managed and monitored for potential fraud using an approved system. Third Party service engagement may be a requirement for account approval.

The FTC has recently published guidelines regarding “Negative Option” enrollment programs and is taking a very aggressive position against merchants utilizing/employing this business practice. Recommendations take in part from the FTC’s website may include but are not limited to the following:

Material terms should be disclosed in a clear, concise manner. Unnecessarily long or inconsistent terms are viewed as an attempt to mislead the consumer.

Terms should be disclosed in a conspicuous manner, clearly placed and labeled on websites in a location that indicates the importance and relevance to the transaction. Fonts and colors must be easy to view.

Material terms must be disclosed prior to completion of the transaction and before a financial obligation is incurred by the consumer.

Customers must provide affirmative consent to any offer, examples include a mandatory “I Agree…” statement checkbox, where the customer is acknowledging the Terms and Conditions of the offer and consents to be entered into continuity program as a result of completing the transaction. Pre-checked boxes do not qualify as affirmative consent.

Merchants must not discourage or make difficult in any way the disclosed cancellation procedures and all cancellation requests must be honored in accordance with the stated terms of the transaction.

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