*** UPDATE 3 ***
A documentary on Yelp called “Billion Dollar Bully” by Kaylie Milliken of Prost Films was just released (currently on Amazon Video, iTunes, and DVD). I was honored to be interviewed to provide my analysis and assessment of Yelp’s paid advertising program for business owners. I am sure you can guess my recommendation…
*** UPDATE 2 ***
It’s hilarious (and by hilarious I mean sad), to see that 7 of our legitimate reviews are hidden. Some of them were from the get-go but others just magically disappeared into the “not currently recommended” section despite having been allowed to show up on our profile for over a year… Since the last update when we had 3 hidden, we are up by four to now seven that are hidden. *tsk tsk*
And yet, the one bogus scathing review from a “Mindy” whom we never spoke with remains…
P.S. We did not sign up for their Yelp paid advertising non-sense (see previous update below). Hmm, interesting eh?
*** UPDATE ***
So my Growth Hacking agency currently have an unpaid Yelp listing so we can help control the online information about us – we’ve had it for some time and recently, an Yelp representative reached out to us via email.
As you can see… it reeked of carrot-dangling vague generalities salesmanship. For example, “$1200 of Extra Free Yelp Ads” which is meaningless because we have no idea what that $1200 actually does and what those Ads are (reading the Main Post below you can see how misleading this is).
And before that he weakly attempted to build rapport by saying that he “previously gone to school and lived in Los Angeles” and as such… knows the “business climate like the back of [his] hand.”
I personally have no idea how going to school and LIVING in Los Angeles would have any bearing on how well you know the business climate. I mean, by that logic, any elementary schooler in the L.A. area would also know the business climate!
And he ended his email with the “assume the sale” tactic by giving me an option between tomorrow or Wednesday (taking away the option to say “NO”).
My response was terse.
“Hi, What is this about? We already have a Yelp listing.“
And you can see below in his response… he just intensified his salesmanship.
He again blew a lot of smoke about a bunch of nothing… “lot of opportunity,” “promotion of $1200 of Extra Free Yelp Ads” (which still explains nothing), “gain exposure,” etc.
Blah blah blah.
And he tried the same “assume the sale” close at the end to get me locked down for a call.
I think he was hoping I’d get swayed by the $1200… little did he know that I knew exactly how absolutely meaningless that $1200 meant in this context.
So I told him straight up,
“Go ahead and send me some info so I can decide if it’s something worth us hopping on a call, I’d hate to waste your time or mine.“
And several days later, he came back like a dog on a bone…
So the dance continued.
I mirrored his email style and shot back the following response (see if you can pick up the similarities between our two emails)…
And this is about the time he called quits because a few days later, he responds with “I will no longer be your point of contact over here at Yelp. You will receive a new rep soon. In the meantime, you can call 877-767-9357 if you have questions. Have a great night.”
In the same email, he sends over some nonsense generic Yelp Ads Video and Yelp Advertising information which are nonsense fluff not geared lacking transparency – I want to know the CPC, where my ads will show, how much (quality) impression I can expect, who will be viewing my ads, demographics, etc. But nope… none of that. And unfortunately, this sales rep wasn’t able to help.
With that said… it’s been almost a month and no one else at Yelp has contacted us so maybe they gave up? *shrugs*
All I wanted was to get something in writing so I can hold them accountable but they shied away from accountability.
On a separate note… we had three 5-star reviews removed from our listing.
Now… I can understand Yelp removing the top two reviews – they are from no-face reviewers whose sole review are the ones left for us. But removing Bree G. (3rd review) when there’s a legitimate image, location, 114 friends, AND 6 reviews?? That made no sense.
And of course trust Yelp to leave a 1-star review on our listing by a angry resentful person who was NEVER a customer and even resorted to name calling in his review.
*sigh*
Way to go Yelp.
*** MAIN POST ***
Maybe you know and maybe you don’t… but Yelp (a local search and reviews online service) offers paid advertising for businesses called the “Yelp Sponsorship Program“.
To sum it up, according to the page advertising this opportunity, this Yelp Sponsorship program allows you to:
- Put up a slideshow of the images of your business.
- Highlight a user’s review that you like the most (as the business owner)
- Promote your business as a sponsored search result and on your competitors’ business pages. Target potential clients while they are making decisions about where to spend their money on a business like yours
It sounds all fancy spansy right? Sounds like you get even MORE control over your business listing which will help “put your best foot forward” and sneak attack your competitors, stealing all their would be clients.
But Stop the Music, Do These Yelp Advertising Features Actually Accomplish Anything? Or are They Just Fluff Designed to Lure You in so They can Zap You?
Suck Them in & Then ZAP Them!
Before we proceed, I’d like to first state that my experience and knowledge of this Yelp Sponsorship program comes from dealing with them on behalf of one of my clients. This client signed up with Yelp (despite my warnings – apparently Yelp’s salesman are SMOOOTH) and I got to learn all about this program.
Having said that, that’s only ONE experience which doesn’t make me an expert but it certainly makes me more knowledgeable of this Yelp marketing program than those who’s never experienced it.
Furthermore, in case you are not familiar with how Yelp works, anybody can post a business on Yelp, as long as it falls under one of their categories and is a “fit” per their policies. And the rightful owner can claim that Yelp page by jumping through some hoops and voila, you have a FREE listing about your business.
And for comparison’s sake, here’s an example of a PAID Yelp review page:
With that said… let’s examine feature #1.
The “Slide-Show”
Now, granted the larger images and the “slideshow” adds a bit more snazziness to the page but honestly, how big of a difference does it really make? If you wanted to see pictures, wouldn’t you be inclined to go visit the business’ actual website?
I’d love to see some split test on this…
Favorite Review
As far as feature #2, I suppose this is a good thing, like Yelp for Business Owners says, “put your best foot forward”. But then they go and shoot themselves in the foot by posting the “Rating Distribution” graph next to it. This graph, as you can see, shows all the reviews, INCLUDING the negative ones.
As humans, we are so inclined to ask “what’s wrong” that I reckon most wouldn’t take the “favorite reviews” at face value; they’d go and seek the worst reviews to find out why those folks gave bad reviews.
Yelp’s Business Owner’s Sponsorship Program feature #3 is my favorite.
Yelp Advertising… on Others’ Pages
So the idea here is similar to Google AdWords, when someone searches for a term related to your business, your listing shows up (as, “Sponsored Result”) with the hopes that your business gets clicked on.
Here’s the caveat though, Yelp is charging you per impression basis instead of per click basis. What this means is that whenever your listing shows up in this manner, it counts against your total allotted amount that you paid of (so you are paying “cost per impression”). If it were click based (cost per click) you would get charged ONLY if your ad gets clicked.
This brings into a few questions, the least of which are:
- So how much is it per impression?
- How many impressions can you expect to get (this is of course dependent on the search volume) – bear in mind that this is a LOCAL search and review online system. Which means that you are really throttling the number of impressions your ads will show up because the number of LOCAL folks doing searches related to you business within your area is a tiny tiny fraction of the searches done nationally combined.
- Are you able to test different the keywords with which your listing shows up (which is costing you money)?
- Are you able to TRACK the results you are getting on fine details? I.e. what keywords are converting, when is the best time to show your Yelp sponsored listing, etc. Basically, questions that any savvy AdWords expert would ask.
- How much control do you have over this campaign? After all, you ARE paying for it.
Before I Go On, Let’s Talk About Leakage
What is “leakage“? Well, in digital marketing term, it means actions taken by your website visitor that doesn’t contribute to your ultimate goal (such as capturing the lead, making the sale, etc.) This often includes having active links which serve as distractions that take the visitor ELSEWHERE.
Now… take a good look at just about any Yelp review page, do you see leakage? Do you see links everywhere? But more importantly (and relevantly from a marketing perspective), do you see the box that says, “People Who Viewed This Also Viewed…”? Do you see how these links tend to be links to direct competition to the business review page you are viewing?
Yelp.com Pay Per Impression is a Friggin’ Joke (& Rip Off You Can Argue)
Okay, so going back to the sample list of questions listed earlier on. Let’s dig deeper and find out exactly what sort of program Yelp is running (and charging you for).
First of all, here’s the cost for Yelp’s advertising program:
$300/mo – promotes you to 1,500 people in your area looking for a business like yours.
$500/mo – promotes you to 4,000 people in your area looking for a business like yours.
$1000/mo – promotes you to 10,000 people in your area looking for a business like yours.
So you are looking at $100 CPM (cost per thousand impressions) to $200 CPM to advertise on their network. In the AdWords world, this is ridiculously high for paying CPM unless you are in some highly competitive and profitable business like real estate and 401k portfolios (oh wait… given the crash of the economy, DOH!). Even then you are pushing it a bit. Folks who are paying high CPM on the pay per click networks have thoroughly tested their campaigns, have tracked EVERY single detail, and have all the control in the world.
But on Yelp? Hellllll no! You don’t know what your “campaign” looks like let alone have any control over it. You are like a blind mouse and they are the big bad kitty toying with you. And yet, they are still charging you an arm and a leg. And one quick look around Yelp will tell you that most businesses are NOT high-price markets, they are mostly smaller markets like restaurants.
This brings me to my second point of frustration when dealing with these Yelp folks, where’s the proof of these impressions people paid for??? Where are my listings showing up? And what’s the conversion rate?? Again, they tell you nothing and keep you blind.
YUCK.
Sales Team Who Doesn’t Know Jack and Preys on Toy Mice
Okay, so I had the opportunity to speak to a Yelp representative on the phone on my client’s behalf. Armed with my knowledge of AdWords, marketing, the works… I came prepared. Sadly for the person on the other line, that’s more than I can say for her.
I asked about all the things I mentioned before (about click through rates versus impressions, how I can track my campaign, how much control I have, etc.) and she was STUMPED. She couldn’t understand why we would care about such matters. As a matter of fact, I’d venture so far as to say she didn’t know JACK about marketing, and yet, she’s representing a team that’s suppose to help us market.
But what REALLY got to me was when I asked her about a 24 hour backout clause, which means that within 24 hours of the start of the campaign, if I am not satisfied with the results I am seeing, I can cancel. Nope she said… and the reason is because it takes time for the program to ramp up for me to really start seeing results.
EHHH? It’s the internet we are talking about here right? I can track clicks fairly easily right? Hmmm… okay.
So then I went on and asked what is the minimum sign up period, to which she replied, “6 months”.
OMGWTFBBQ, 6 month minimum at $325 a month where you have NO IDEA what’s going on? Thanks but no thanks.
The Proof is in the Pudding – Proof that Yelp Sucked
Against my better judgment, my client went for it anyway, and looking at the chain of emails he received from Yelp along with how their program is setup, I can sympathize why.
See, Yelp is banking on folks NOT knowing the difference between “impressions” and “clicks”. They are banking on the fact that businesses will confuse “impressions” with “visitors” – as in, “For $300 a month I can get 1,500 NEW customers every month? SWEET, sign me up!” They are banking on folks not knowing how to track their progress and not caring to either. They are banking on being able to just sweet talk their would be victim on the phone and dazzle them with fluff.
And worse yet, without the clients being able to track the campaign, Yelp is able to get folks to resign, again and again, by giving out meaningless stats.
To give you a perspective of just how much SUCKINESS is in this program, with the aid of Google Analytics and my idea of adding a page that leads people to a printable in-store coupon, we were able to see how the program performed. Here are the stats, in 2 months time, Yelp drove 64 unique visitors to this special landing page (which again helps us track the comers from our Yelp advertising campaign) and of those 64 visitors, we got 9 customers that we can tell.
This meant 32/1,500 = 2% conversion from visitor to Yelp to the website and 0.3% from impression to actual customer. Put it another way, my client paid $72.22 for each of those clients – clients who are just diners to his restaurant.
NOTE: We are not even sure if these visits and visitors are a direct result of my client PAYING for this Yelp advertising program, read below to see what I mean.
Ouch.
Look, You Don’t Need to Pay for Yelp, Nor Do You Want To
Don’t get me wrong, Yelp.com is awesome, I use it all the time to get the low down on new restaurants, find a plumber, etc. But you don’t need to pay to use it! Business owners can get free Yelp review pages and those rank (from a search engine optimization perspective) just as well as the paid for pages.
This means you’ll get traffic regardless!
Hope this was enlightening for you. Like I said earlier on, I’ve had only one experience with Yelp and boy was it a horrible one. I’d love to hear some success stories and some proof that it worked.
Until then, don’t pay Yelp a dime to join in on their “Yelp for Business Owners” program, especially if you are a restaurant owner.
Raymond Fong
If you are looking for real trackable result, I’d like to recommend you take a look at our gowth hacking agency. We help businesses (both startups and traditional businesses) gain more exposure, get more leads, obtain more customers, and ultimately add to their bottom line leveraging the internet.
P.S. You might be interested in this post I wrote as well, “Yelp Strikes Again…“
P.P.S. You might enjoy my book on growth hacking, “Growth Hacking: Silicon Valley’s Best Kept Secret”, because it’ll help you grow your business.
Yup, SCAM SCAM SCAM. Yelp Ads are worthless and high priced. No concrete info on actual pricing or costs provided so no way to dispute. DONT DO IT!
BRUTAL DISCOVERY about yelp advertising.
I found out that after I pay $4 per click, if the users decide to use the REQUEST A QUOTE button, YELP AUTOMATICALLY SENDS THE SAME REQUEST TO YOUR COMPETITORS!!! It is also NOT obvious to the user that yelp is sending emails to your competitors with the user’s request. The user has to manually DESELECT the additional sends if in fact they see that it is happening.
Try it yourself, go to “REQUEST A QUOTE” on your site with an account that does not belong to the business and try it.
This “Request a quote” would be a valuable feature if I did not end up paying for my competitors to get leads from my advertising $$$.
Ouch. This is true, Yelp does make it easy for the end user to send the same email to all of your competitors… on your dime. Gah. :/
I wish I had found this article before I stupidly agreed to try the Yelp advertising program. While I did understand that a click to my website is not a customer, I did NOT know that an impression is not a click. Besides the fact that the program did nothing for me for all of the reasons that you so clearly explained, it turns out that the program is renewed AUTOMATICALLY after your agreement expires. Once you realize that, it turns out that you must also cancel 30 days in advance. So, after my 3 months, the add kept running, and I found a charge on my credit card. I called to cancel, and they planned on charging me for an additional month because cancelation doesn’t take into effect until 30 days from your cancellation submission. When I asked to get a copy of the contract, it turns out that there is no physical contract. Once you do the “express checkout,” which is where you are on the phone with the representative, and they get you to agree to the 3 months or whatever it is that you agree to, they send you a welcome letter that states, at the bottom, that you need to proactively cancel the program. In that text, there is a link to the “terms and conditions” which probably does state that you need to cancel 30 days in advance. Of course, none of this was discussed over the phone. I am now disputing the charge with my credit card company, and have asked that the recordings of the sales pitch with Yelp be reviewed to verify that this very important information was omitted.
Yelp is the worst.
Yelp has been bugging me for years to advertise and I finally caved in after they gave me a coupon. But even with my discount, it’s stlll way overpriced for what you get. The one thing that is frustrating is lack of control over demographics and what time of day your ads run. I definitely don’t want my ads running when we’re closed and that annoys me.
Yelp is a scam in a way. Reviews get filtered, sign up for ads all of a sudden legit reviews that were in the filter pile come back up the next day. Lol they call you 3 times a week when you are not on their ad program any more. Ranks fall when your not doing ads. They are extortionists, stick to google ad campaigns you will do more with that platform. Yelp will charge you just to use up your budget sometimes up to $40 dollars a click when google is 15-25 Depending on your keywords. Google > Yelp
Yes having used yelp myself its hard to see if there is any method to its madness
I’m convinced that Yelp is a big scam. I own a coffee cafe. Have had at least 10+ legitimate 5-star reviews pulled in last 2 months. They do however post the 2-3 star. Yelp has been trying to get me to advertise for months and I have not, for multiple reasons. Personally contemplating whether I pay the extortion or avoid altogether.
I recently started a private practice that has a very specific goal of service and NOT sales which is way out of alignment with the advertising that Yelp has been pressuring me with. My personality style is to take in all potentials but sometimes narrowing down what is the best fit is challenging. Your post helped me to make my final decision to not move forward with a contract. Thank you for your honesty!
Hi Raymond,
Great article. I work for a financial institution and we recently signed on for Yelp for Business, but purely because they only allow 10 free business pages. We have 23 locations, which mean 13 of our locations were not within our control.
I declined all of the fancy add-ons and they ended up charging us 30/location for the cheapest package, so $690/month. It sucks, but we want to have a say in what’s being said on these pages. Luckily, we’re big enough that the cost is pretty nominal.
That said, we haven’t been offered or seemingly given any preferential treatment. I’ll update you if anything interesting happens in our case.
Keep us posted Keith, thanks!
Raymond, thank you for your article. I just viewed all of my “not recommended” views, which are DOUBLE what our recommended views are. Paid competitors have reviews with zero friends, one to two reviews, yet these are featured but ours are not. Moreover one of ours that is featured only has one friend and one review and no photo. Clearly the algorithm is a myth. I called customer service and was told that the algorithm supposedly picks up yelp searches too, however this cant be the case because the “not recommended” reviews (ALL 5 stars) are active users. I’m pissed but not really sure there’s anywhere to go from here besides finding another platform.
Thanks for the extremely helpful info. I suspected as much.
Excellent Article!
Our small service Business was pushed down from 2nd spot to the 20th spot, I believe because I refused to purchase Yelp Ads. I find it disturbing when there are NOT 20 like businesses in the area! How did this happen? Furthermore, we received the 2017 “Best of The Best” Award by the Readers of the Auburn Journal plus awarded Certificate of Recognition by California State Senate.
I just ordered your book on Amazon – and will follow your posts! Thank you for sharing your article…
🙁 Sorry to hear that Nacy.
Hopefully you’ll find the helpful information in the book and if so, I’d love it if you can leave a review on Amazon because it would mean so much to me, thanks!
hmm what I am getting though…Is that if we are not purchasing their enhanced profile, we are getting more good reviews filtered. Am I wrong about this? I like the insights here in this blog but it doesn’t really provide a solution. Customers and guests still go to Yelp to watch reviews no matter how much we hate Yelp. It would be more helpful if we can see some suggestions to do a better Yelp page.
There’s no empirical data to support this that I am aware of – only anecdotal data. If this can be proven, Yelp would have lost a ton of lawsuits 🙂
The intent of this post was to encourage readers to think more critically before deciding if they want to pay Yelp (with the assumption that paying them would return any ROI).
Thanks Raymond. I spent weeks debating on doing yelp ads for a start up. It was my main source of getting clients. I should just do it organically and look into other marketing outlets to build clientele.
You’re welcome!
I’m so sorry this happened to so many of you, but also thank you all for sharing your experiences. I got my company’s free Yelp listing verified today; they hit my inbox with the $300 in free Yelp advertising offer. The email of course sparked my interest, and I thought, “My boss will be so pumped when I come through with $300 in free ads!” I selected my program, filled out my details and entered the credit card information. I was literally about to hit the “Purchase” button when something inside me told me to do a bit of research before committing. Thank goodness I did so, because I haven’t seen even 1 positive review from someone who paid to play on Yelp. I can’t even begin to explain how disgusted I am with them as a human being, let alone as a marketer. Where are their morals? I just can’t believe how big of a scam Yelp Ads clearly is. Even a CTA button with the word “Purchase” instead of “Submit” is shady to me when you’re supposed to be agreeing to a FREE ad offer. I’m so thankful this article (and subsequent comments) exist. Hopefully more folks will choose to do their research before committing to this fraudulent and disgusting behavior. …The ONE good thing to come of this? I can’t wait for a sales rep at Yelp to contact me so I can mess with him/her a bit. 😉
Hello Sarah, its much worst than what you supposed.
My company had the whole office to sit in on a Yelp webinar. Yelp said that the whole office could put a profile on for free with no reservations to purchase anything in the future. I put up my free profile and forgot it was there because I have several on other sites. What happened that frightened me is a past customer put up a negative review that was total nonsense. I quickly responded offering facts and data to support what actually took place. Also, the customer’s father got online and wrote that his son was totally wrong about what happen and please don’t listen. Other past clients posted positive reviews as well. I thought this would suffice however it didn’t. I went back on the site and saw where none of the reviews including my own was used. I called Yelp to find out how they rated positive and negative criticism and they stated that an algorithm connects useful data with negative reviews. The salesman also kept me on the phone for an hour explaining how advertising with Yelp could help market myself also implying that the negativity could be taken down. This sounded too much like extortion so I opted to just removing my profile page. Won’t work once its on their site. I am still trying to get our corporate office to get it taken down while I also warned others on the BBB website.