Stampin’ Up

All Your Internets Are Belong To Us: One Stampin’ Up! Demonstrator Tells Why She Is Resigning

September 3, 2009 By Cynthia Ewer 34 Comments

The following is a guest post from Scrapbook Update reader Cynthia Ewer. Ewer is a Stampin’ Up! demonstrator, as well as the owner of the website OrganizedHome.com and the author of the book Houseworks.

I’m incredibly sad: my journey as a Stampin’ Up! demonstrator is coming to a close.

Not that it’s what I want to see happen. I’m being forced out by pending changes to the Stampin’ Up! Independent Demonstrator Agreement (IDA). In a nutshell, Stampin’ Up! wants to control advertising across the site network that I publish as my day job–even on those sites that have no connection whatsoever to rubber stamping, Stampin’ Up!, or papercrafting.

Earlier this week, Stampin’ Up! headquarters alerted rank-and-file demonstrators to new provisions in the IDA that will place restrictions on every aspect of a demonstrator’s online presence, from e-mail to Twitter. Demos have until September 30 to agree to the new terms; if they don’t agree, they’ll be dropped after that date.

For this Web publisher, it’s the writing on the wall; I will be unable to sign the new agreement.

Why not? Well, here’s the problem: the provision steps outside–WAY outside–any reasonable relationship to my Stampin’ Up! blog, and applies to my global online presence.

That online presence is my day job: editor and publisher of the OrganizedHome.com site network. That network includes specialty sites like ChristmasPlanner.com and OrganizedChristmas.com–and it runs on advertising. My ad networks pay the bills, so I can offer resources, articles and printables without charging subscription fees.

Now Stampin’ Up! insists that because I’m a demo, I am not permitted to accept ads on my network that might compete with Stampin’ Up!’s product line. Worse, the new rules apply this restriction globally, to sites in my network which have nothing whatsoever to do with Stampin’ Up!.

It’s Over-Broad

Advocates of the new rules point to alleged abuse on some Stampin’ Up! demo blogs. “You can hardly tell she’s a demonstrator for SU!,” they argue, “what with all the links to other sales sites!”

You know, I agree with them. Stampin’ Up! is within its rights to ask demonstrators to refrain from this kind of marketing confusion–and if that’s all the changes accomplished, I’d cheer them on.

Unfortunately, the new rules go far beyond curing blog abuse. The new regulation of “any presence” online interferes with business decisions pertinent to entirely unrelated Web sites.

As one of the cheerleaders for the new plan put it, “you can’t serve two masters”. I find it presumptuous in the extreme that by owning a small, hobby-based side business, this company believes itself entitled to dictate terms to me concerning my unrelated day job.

It’s Intrusive

Even if I wanted to comply, it would be nearly impossible to do so. My site network partners with four or five major ad networks, including Google’s Adsense program. As a site owner, I am able to exclude very broad categories–adult ads, political banners, dating sites–but I have no way to pick and choose between a banner ad for craft store Joann’s sewing products (permitted under the policy) or a sale on scrapbooking paper at the same merchant.

What rationale can Stampin’ Up! offer for this invasion of my business decision-making? I can’t find any, aside from a doomed idea that they can somehow control Internet advertising to their advantage.

In any event, it’s hardly a toss-up for this business owner. I won’t permit the terms of my hobby-only relationship with Stampin’ Up! to dictate to me how I run a 13-year-old Web network that’s given me an international book contract and television appearances on ABC’s The View.

No contest. You lose, Stampin’ Up!–and I fail to see what benefit you derive for attempting to place this burden on my unrelated commercial activities.

It’s Offensive

Even if I put aside the negative effect on my business that would flow from signing on under these new restrictions, my spirit can’t accept them.

By attempting to control “any presence” online, no matter how divorced from or unrelated to their legitimate interests, Stampin’ Up! has shown themselves possessed of both a view of the Internet and a view of human relationships that disqualifies them from business partnership with any thinking online business owner.

Their draconian demand to control every message board post, Facebook update or Twitter tweet for everyone who demonstrates their product line is outrageous–and has no relationship to the stated goal of avoiding abuse. I won’t censor my entire slate of personal, business or social interactions online for such a slender rationale. And I’m shocked that they would consider such over-reaching to be reasonable for any demo.

I can only speculate whether this new policy was conceived out of a desire to rid the company of “pesky hobby demos”, or out of ignorance about the way the Web works–but I doubt that the policy will grant this company the results it is hoping for.

The Revisions

Yes, Stampin’ Up! did issue a clarification concerning policy changes affecting demonstrators’ online presence.

Sadly, it does not modify or retreat from the central problem of the new policy: the demand that demonstrators cede control over all online communications–even unrelated Web sites, blogs or forums. While it clarifies link policies, and signals a potential turnaround on the issue of gallery uploads and message board involvement, there is no hint that they will address the central privacy issue: extensions of the terms of the IDA to a demonstrator’s NON-SU! online presence.

It’s still a deal-killer for me.

Let’s look at their attempt to justify the policy, comparing demos to a paid product spokesman like Michael Jordan:

Second, the changes in requirements are meant to protect the Stampin’ Up! brand and business as a whole, not restrict your personal freedom of creative expression. For example, consider the famous spokespeople that companies contract to represent their products, like Michael Jordan for Nike. Not only would it have been unethical for Michael Jordan to promote Reebok on the side, but Nike likely had a specific agreement with him not to do so. Your response to this comparison is likely, “But we don’t have million-dollar bonuses from Stampin’ Up!” That may be true, but we do compensate you for the work that you do, and you are definitely our superstars! We consider our demonstrators our partners in business, and an exclusive sales agreement between us is an important aspect of that partnership.

It’s still the same-old, same-old: “We consider our demonstrators our partners in business, and an exclusive sales agreement between us is an important aspect of that partnership.” So it all comes down to how you define “exclusive”–and clearly, Stampin’ Up! does not want to retreat from their position that by signing an IDA, they can exercise control over all aspects of a demo’s online communication, whether it pertains to Stampin’ Up! or not.

This failure to grasp the distinction between online communication in the service of Stampin’ Up! and personal, employment or social communications is the problem. They haven’t moved an inch on this one. Because this clarification does nothing to retreat from Stampin’ Up!’s assertion that they own it ALL.

The comparison to a paid product spokesman and public figure is misleading. “Superstars” or not in Stampin’ Up!’s view, asking for total control of our online presence, whether or not it is in a sphere related to their business interests, is more a contract of adhesion than a fairly compensated arrangement between two equally-empowered commercial entities.

(Can I just say that I highly doubt Michael Jordan’s lawyers would permit his private communications to be bound in this way?)

So for all of us, it comes down to a simple question: what value do you place on your online presence?

Stampin’ Up acknowledges the value they put on our online presence:

We have invested substantial resources-financial, creative, personnel, etc.-in providing products, services, and tools to help you build your demonstratorship. While these changes may seem restrictive, we feel strongly that they will protect our investments and your business over the long term.

Stampin’ Up! puts the value of our online lives at the price of their “investment”–whatever that is. In return, we are expected to cede control over all online presence: e-mail, social networking, message boards, forums or Web sites, whether they have the slightest connection to Stampin’ Up! or not.

For hobby demos, is the 20% discount worth giving up the ability to join freely, write freely, publish freely in Internet venues–whether or not they pertain to Stampin’ Up!? Or in other words, will you sell your online soul for a mess of pottage?

Bottom line: Stampin’ Up! can claim “all your Internets belong to us!”, and many demonstrators without much of an online presence will comply.

But Stampin’ Up? You’re going to lose your best and your brightest.

Starting with me.

[Editor's Note: Comments on this post have become quite contentious. Several have been deleted due to failure to comply with Scrapbook Update's Comment Policy. Please keep debate respectful and polite.]

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Filed Under: News Tagged With: Stampin' Up

Stampin’ Up! restricts Demonstrators’ online activities [Updated]

September 2, 2009 By Nancy Nally 29 Comments

Demonstrators for direct sales stamp and scrapbook supply company Stampin’ Up! received a new Independent Demonstrator Agreement (IDA) yesterday which they must sign by September 30th if they wish to remain demonstrators with the company. The new agreement contains controversial new restrictions on the activities of demonstrators which have lead some demonstrators to say they will resign rather than submit to the new agreement’s rules.

Two key areas of change have been made to the agreement in section nine, which is titled “Restrictions on Representation of Competing Companies or Products.” The first areas of change, which seem to be the less controversial of the two, is that demonstrators are no longer allowed to work as members of design teams for competing companies. Demonstrators who are under contract to design teams for other companies will be allowed to fulfill their current term of contracted obligation to those other companies. General consensus from the demonstrator community (with a few exceptions) seems to be that it is understandable that Stampin’ Up! as a company would want its demonstrators to have a commercial interest in selling only their product.

The second area of change seems to be the more controversial of the two. It has touched off a firestorm of criticism from demonstrators. It is the new sub-section (d) of section nine, which addresses specifically electronic communications as it relates to competing product:

I understand that the content of my electronic communications such as e-mail, personal blog, web site, Twitter, Facebook, other social media and the like can have a considerable influence on how I am perceived as a Demonstrator for Stampin’ Up! and also reflect significantly on the Company. Accordingly, I will refrain from using such electronic communications to promote, market, or sell the products of other companies (direct or retail sellers) who offer similar products, which includes: decorative stamps (in any form), stamp art accessories, scrapbooking products, digital art solutions, and vinyl wall art.

The company has issued a FAQ (read it here) to help demonstrators interpret the new IDA. According to the FAQ, sub-section (d) means that demonstrators may not post information (names, stores or prices) about any products besides Stampin’ Up! products anywhere online. In fact, since the agreement includes email in the communication that it covers, it appears that even providing that information to someone via private email might be considered a violation of the agreement. I have requested clarification on that point from the company’s public relations department and will post the answer if/when it is received.

The FAQ stresses that demonstrators will still be allowed to post projects online (or have them published) but they cannot provide detailed product information about any non-Stampin’ Up! products used in their projects. They also cannot publicize their participation in any online forum that promotes or sells non-Stampin’ Up products. Yet many demonstrators say they rely on outside sites (such as sites that provide technique tutorial videos) to help them promote their business or educate their customers. Many consumers also say that their involvement with Stampin’ Up products has also been enhanced by outside sites, such as this poster on Splitcoaststampers:

I’ve got to say that I discovered SCS through a friend/demo. I would have grown bored with SUOnly pretty quickly and SCS has kept me in stamping and buying SU. With the last SU catalog, I still earned level 2 hostess set. SCS has only enhanced my enjoyment of SU products. It’s where I come to see samples with their latest stamps. Too bad the bloggers can’t link it on their PERSONAL blogs.

-Nancy (Phantom)

But the most-discussed aspect of the changes to section nine have been the ones that apply to linking. The FAQ describes the new terms:

Q: On my personal blog, I have links to my friends’ personal blogs and web sites. Some of them sell competing product. Do I need to remove these links?

A: Yes. In evaluating the links on your web site, you will need to remove any links to blogs, web sites, or the like that promote, market, or sell competitive products.

This is the section that has prompted the most outrage and resignation announcements by demonstrators. Many appear to be willing to limit their own posted content to company products, but can’t stomach the thought of having to cut themselves off in the social online world from family and friends who aren’t in compliance with the Stampin’ Up non-compete policy.

My daughter is a SU demo. I am a DT member for 2 competetive companies. According to this new IDA she can not have my blog link on her blog site. What kind of CRAP is that.

-Neva (n5stamper)

And there is one big unanswered question about interpreting the policy – what constitutes “linking”? If being friends with someone on a social network constitutes “linking” to them in the eyes of the company, Stampin’ Up! demonstrators could be in the position of having to police the content posted by their social media friends on sites like Facebook and Twitter, and having to cut themselves off from a great many people who might post content unacceptable to Stampin’ Up! I’ve passed that question on to the public relations department at Stampin’ Up! with a request for clarification and will post the answer on Scrapbook Update if/when it is received.

Update – Stampin’ Up! has revised the FAQ about how the new demonstrator agreement will be applied to state the following:

Q: On my personal blog, I have links to my friends’ personal blogs and web sites. Some of them sell competing product. Do I need to remove these links?

A: No and yes. On your web site, blog, or other online space, the policy is that you may not post links to competitive companies’ web sites, or to locations where a customer could purchase competing products. As you evaluate the links that you provide, the only restrictions would be that the link should not a) direct to the company web site of a directly competing company (retail, online retail, or direct sales), or b) direct to the web site or blog of a representative for competitive products where the customer may purchase from directly. For example, if you link to a friend’s site and customers can purchase products directly from your friend on that site, you need to remove the link to that site. If they cannot purchase products directly from your friend’s site, you do not need to remove the link. Updated 9/2/09.

Q: I regularly participate in online forums relating to the craft industry, and maintain a gallery of my artwork on one of these forums. With the new IDA, is this activity still allowed?

A: Yes. Participating in forums and posting your projects for your fellow crafters can be an important method of inspiration and recognition. It’s important to note that the new IDA does not prohibit this kind of activity. You may link to any blog or forum that highlights the crafting industry in general, regardless of the products highlighted or advertised. You may want to consider, however, where you are sending your customers, and the kinds of advertising they’re likely to encounter when you make your decision on what kinds of links you recommend that your customers follow.

We are currently exploring ways to provide more of an open community and sharing environment, as well as opportunities for artistic recognition for our many talented demonstrators. We will keep you updated on any new developments. Updated 9/2/09.

These revisions make the application of the policy much less broad than the original version of the FAQ did as far as linking is concerned. This removes the concerns about violations from things such as friending on social media networks like Twitter and Facebook.

However, it appears the company is standing by the rest of the guidelines, issuing a statement to justify them that includes the following:

…the changes in requirements are meant to protect the Stampin’ Up! brand and business as a whole, not restrict your personal freedom of creative expression. For example, consider the famous spokespeople that companies contract to represent their products, like Michael Jordan for Nike. Not only would it have been unethical for Michael Jordan to promote Reebok on the side, but Nike likely had a specific agreement with him not to do so. Your response to this comparison is likely, “But we don’t have million-dollar bonuses from Stampin’ Up!” That may be true, but we do compensate you for the work that you do, and you are definitely our superstars! We consider our demonstrators our partners in business, and an exclusive sales agreement between us is an important aspect of that partnership.

Will the linking restrictions being loosened and the explanation by the company be enough to placate angry demonstrators, or at least some of them?

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Filed Under: News Tagged With: Direct Sales, Facebook, Social Media, Stampin' Up, Twitter

Layoffs Imminent At Stampin’ Up!

March 21, 2009 By Nancy Nally 2 Comments

Direct sales stamp and scrapbook company Stampin’ Up! announced on March 19th (Thursday) that layoffs at the company are imminent and that the cutbacks will probably start in April.

Stampin’ Up! stressed in the announcement that the company carries no debt, a great advantage for the company in dealing with the current economy. But due to the economic situation affecting sales in 2008, Stampin’ Up! says it will be forced to make staff cuts in the near future. These cutbacks are still needed, according to Stampin’ Up!, despite the fact that the company started making other cost reductions more than a year ago.

This will be the first time in the company’s 20-year history, according to Stampin’ Up!, that they company has been forced to use major layoffs. But co-founder Shelli Gardner says the measure is necessary to protect the business, which has 40,000 consultants worldwide:

“Our company is sound,” says CEO and co-founder, Shelli Gardner. “Making this decision is one of the most difficult things I’ve ever done, but we have a responsibility to preserve and protect the businesses of over 40,000 global demonstrators by allocating company resources responsibly now.”

Stampin’ Up! is a twenty-year-old $200-million company with more than 500 employees based in Utah. Its network of 40,000 demonstrators has expanded internationally in the past five years to include Canada, Australia, New Zealand, France, Germany and the United Kingdom.

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Filed Under: News Tagged With: Stampin' Up, Stamping Up

Stampin’ Up! to debut web stores for Consultants

September 6, 2008 By Nancy Nally Leave a Comment

Direct-sales stamping and scrapbook company Stampin’ Up! will soon be debuting online shopping for its products.

It appears the company will be following the model used by companies like Avon, where demonstrators will each have their own web pages to use to promote products to customers.

Stampin’ Up! will be the last of the three card/scrapbooking home party companies to begin to offer an online ordering which benefits its consultants. Online ordering systems are already used by both Creative Memories and Close To My Heart.

Online ordering is a great tool for consultants who have a problem in today’s busy world coordinating schedules of customers to host parties or even just to get catalogs to them and collect orders.

Filed Under: News Tagged With: Stampin' Up, Stamping Up