Yelp: Real People. Real Reviews. Deceptive Sales Tactics.

deceptive-yelpIn my talks, I have often said that Google is the print Yellow Pages for the new millennium. But as Rocky Argawal has pointed out that title really falls to Yelp. He has noted that Yelp, in charging some local advertisers $600 per 1,000 impressions,  “despite ostensibly being an Internet company, [their] business model is closer to that of yellow pages companies: sell a questionable value proposition to many who don’t understand what they’re buying. 

It is not just their pricing model that mirrors the old yellow page companies but their selling techniques as well. I was recently pitched by them on behalf of a client. The sales person I dealt with, like the well trained ATT Yellow Page salesman of yore, was well spoken, persistent, organized and supremely confident in the product. The sales person would set up an appointment, call to me remind about the appointment, call to double check I would make the appointment and then remind me that I had missed it. It was if he was channeling my yellow page salesman of 30 years ago.

The pitch was persuasive and well organized trending strongly towards the hard sell and not the least bit consultative. The sales rep provided a list of 5 links referenced during the phone call that built the case from the top down that Yelp is the leading online directory, that they uniquely understand the internet and that you as a business person can only ignore them at your own peril. Hey if Steve Jobs says they are important who are you to disagree? You are asked to affirm these points along the way as they make the final point that their advertising makes sense. If you agreed to all that went before you can’t very well disagree on that one, final eensy weensy point.

The problem? Like the Yellow Pages, Yelp uses FUD (fear, uncertainty & doubt) and more than a little slight of hand to make their point.

  • When asked about ROI they respond that since your average selling price is $x then it will only take one sale to make this pay (yea right).
  • When asked about conversion tracking and analytics you are are told how good their dashboard showing impressions is.
  • When they are going for the close they point out that by taking out an ad you guarantee that your competitor’s ad will not show up on your listing. What SMB can refuse charging that red flag?
  • When asked if they had an offering that required less than a 12 month, the rep noted that yes but the best returns occur in month ten (hmm I wonder why that is?).
  • But the biggest slight of hand is their use of Google Trends to “prove” that they are the leading online business directory

This last bullet actually moved the pitch from slight of hand directly into the art of deception. And it was the foundational first point for the whole sales pitch. To demonstrate Yelp’s prominence they compared the searches on the term Yelp in the Buffalo market to searches for a number of online business directories. Here is the chart from Google Trends that “proves” Yelp  is the leading local opportunity for SMBs:

Screen Shot 2013-01-19 at 11.01.39 AM

When I asked again because I wasn’t sure that I had heard the sales person correctly the rep said: “This [Google] trends chart is a measure of the popularity of directories, which directory is used the most. It shows that Yelp is the most popular online directory.

Claiming that the number of searches on Google for “Yelp Local” is a reasonable metric to assess importance of Yelp is, as Rocky pointed out, obviously preying on the uninformed. And who, pray tell, would be searching for “Google Places” on Google? Using Google Trends to graphically portray absolute traffic and market dominance is the ultimate in misleading sales tactics as it demonstrates nothing of the kind. I doubt that one in a thousand SMBs would catch Yelp at their effort to close at any cost.

The question of whether their pricing model ultimately succeeds is up in the air but I can say that these tactics, like their use in the era of the Yellow Pages, will come back to haunt them.

Here are the reference links that the provided for their sales call:

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Yelp: Real People. Real Reviews. Deceptive Sales Tactics. by

68 thoughts on “Yelp: Real People. Real Reviews. Deceptive Sales Tactics.”

  1. Glad to have found this blog. I was contacted by a very smooth talking charming Yelp salesman this summer and he was everything you described but much much more.

    THis guy was good, I got to hand it to him. He got me. He pretended we were friends and sold me. And I’m not an easy person to sell to either. After calling me day and night for about a week, I finally started to believe that what he knew was best and my opinion didn’t matter anymore. So I signed up for a year at $425 a month to be effective Sept 1, 2013. I signed up beginning of August.

    2 days after I signed his contract I realized I had made a horrible mistake, so I contacted him to cancel.

    I argued with him that Sept 1st start date didn’t happen yet, so why couldnt I cancel? He said “your already in the system”. I didn’t want the $850 cancelation charge so I agreed to leaving it on.

    The next two weeks I beat myself up. I was devistated. Even my kids noticed my mood change. I couldnt’ believe what I signed for. and I’m just AN ARTIST, I’M A 1 WOMAN ARTIST that works occasionally, but I don’t even consider my art – a business. It’s just something that I do FOR FUN, that pays, when I have TIME.

    Anyway, after the 2 week emotional breakdown (I actually signed up for therapy session because of it). I get contacted by another woman from Yelp. Her job was to make sure my yelp page “looked good”. I avoided her at all costs! I didn’t reply to her messages, hung up on her calls and didnt’ return anything. I was in YELP TRAUMA!!!!!!!!!!!!!!!!!

    She was upset with me as to why I was avoiding her (after all, she wasnt trying to sell me anything, I was already “in the system”. So finally I decided to reply to an email and I said “YES OR NO… CAN I STILL CANCEL?”.

    She replied “I’m so sorry you feel this way and your campain has not even started yet, I really need to speak to you about this, but to answer your questions, YES, you can”.

    Immediatly I called her and told her my whole story. Almost broke down to her. She sounded like she was not at all suprised. She cancelled me.

    Although I don’t have the cancellation papers yet like she promised she would email me, I have in writting saying she would, so I’m cool with that. I know I can put a stop payment with that alone.

    Just so you know, since then, my “free ad” is no place to be found on YELP. Technically it’s still there, because I can link to it. But its not coming up at all on any searches like it was BEFORE THE PHONE CALL FROM HIM.

    wow. that’s all I can say. No worries, I will open a new yelp page and he wont know it’s me. that’s all….

    1. liz

      They are slick aren’t they…. I have experienced this type of salesman forever so I was somewhat hardened but they are “good” if you define closing the sale at all costs as good.

      Sorry you had such a traumatic experience but I am glad you moved to the other side successfully. You should send Yelp your therapy bill. 🙂

  2. @Bill. LOL. It’s cool, I don’t want anything from them! I don’t even want the free ad anymore (the one that miraculously is gone after i cancelled).

    Even the clients that contact me from yelp have to tell me they are contacting me from yelp as if… “you better be nice to me or I’ll tell on you!!” I don’t really want to hear the word “yelp” in my daily life anymore. ha ha….

  3. Mike…This is the most accurate assessment of Yelp today! it’s sad that they are getting offers from Google and Yahoo and now turning to the old YP tactics to raise revenues…my clients avoid their cheesy sales reps and direct the calls to me…I have fun with these calls and extend the white glove business courtesy!

  4. Yes, I ran ads with them for 5 months.. Only got ONE actual conversion in all that time, I paid out over $240 to them and got absolutely NONE of the ROI that they promised over the phone.

    Everything that this person said is 100% true.

    I filed a complaint with the BBB and they refused to refund me even $60 saying they made no guarantees of that the service would generate any conversions whatsoever. They said “We cannot offer you a refund” .. I love those sleazy scammer types..

    as if God came down and said THOU SHALT NOT GRANT A REFUND.

    They are fucking refusing with FULL WILL POWER to grant a disgruntled customer a $60 refund. Ridiculous.

    Oh, other thing is too. My customer wrote a review of my service and it immediately got filtered, showing up so on the site. It looks like one of those comments on Youtube that got voted down and isn’t shown by default as a result.

    I called them and told them that it is deceptive it makes it sound like a false review. They said it’s an automated filter that they can do nothing about.

    What it comes down to: They rip you the fuck off. If you complain, there’s nothing they can do about it because it’s all automated. Riiiight.

    Never doing business with these scam artists ever again.

    1. I was contacted by Yodle, then Townsquare Interactive, then Yelp. All 3 within a year. Wanting to sell custom made furniture via the Internet, I fell for Yodle with anticipation of what they promised. After an initial discounted 6 months, no results….account closed and listing was pulled off the internet.

      A week later TS calls. Their sales pitch was similar to Yodel, but they do not hold you to a predetermined period of time. 3 months, one call. I closed that account & lost a website.

      Then, Yelp called. I explained to them my results with the first two and was lead to believe they were more established with a BBB rating and would create more business. I fell for it. They assured me they were the best. (I took notes on every conversation.) An initial monthly fee + $6 per click……meaning anyone calling my number listed on the internet I got charged $6/call. The number of calls that supposedly were dropped my me was unbelievable and I complained about it. In looking at the actual phone numbers, I’d call the numbers Yelp listed and got the other side to answer with a recording, “The number you have called is not a working number.” The $425/month hit… contact via by one person, which looks like one real client. It was a pain to actually close the account with Yelp with a closing fee of $450. They said they’d leave the account active for 2 months thinking I’d reconsider. One thing to do is set up your account with a credit card that is front loaded….put money into the card so you know how much will get spent, it’s like a debit card, but more protected from hackers. I closed the account.

      Today, Google called to list my company for $600, but offered a one time discount dropping the fee to $399 for life….One time offer. I’d heard that before from them. I told them up front I’m not agreeing to sending any money today, I got this ‘that’s okay, I’ll just finish your company information. When done he went for the money via Cc #. I refused, so he said “I’ll get our finance manager on the line, he can help you. As soon as he said that, Bryce pipes in saying he had been listening to the call and could offer a better deal, $299 for life. I told him I didn’t have the money today…they hung up.

      Word of mouth is the best advertising I’ve experienced over 35 years. Using the internet sounded appealing, so I figured I’d give it try hoping to find a good company to work with. I’ve not found one yet. I’ve learned a lesson that hopefully no one else will have to learn.

  5. Yelp just called and used the quantcast list to prove that the average person who uses Yelp makes $150,000 a year. What is up with this Quantcast list? It’s total BS. Does Yelp bribe them or what? No other list has Yelp anywhere near the top 10.

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