Does Yelp Use Blackmail As A Monetization Strategy?

Amit Chowdhry | Thursday February 19, 2009 | 68,585 views


East Bay Express is reporting an interesting story about Yelp.  Yelp is supposedly offering businesses a way to have negative reviews deleted from their website for a monthly price.  “Hi, this is Mike from Yelp,” stated a Yelp representative. “You’ve had three hundred visitors to your site this month. You’ve had a really good response. But you have a few bad ones at the top. I could do something about those.”

John, the owner of the restaurant that was called by Yelp said that he was not used to getting phone calls like these.  He was familiar with Yelp, but did not expect them to charge a monthly fee to have negative reviews removed. John’s restaurant has over 100 reviews and has about a 3.5 star rating on Yelp.

John had asked Mike, the Yelp rep what they could do about removing the bad reviews.  “We can move them. Well, for $299 a month.”

“When you do get a call from Yelp, and you go to the site, it looks like they have been moved,” stated John. “You don’t know if they happen to be at the top legitimately or if the rep moved them to the top. You don’t even know if this is someone who legitimately doesn’t like your restaurant. … Almost all the time when they call you, the bad ones will be at the top.”

John’s company isn’t the only one.  East Bay Express also reported that over dozens of businesses have reported the same thing is happening with them too.  Some businesses even believe that Yelp representatives themselves are writing the negative reviews.

These are extremely shady tactics and if these stories are true, Yelp is a disgrace to Web 2.0.  You figure Yelp would have a better monetization strategy given their $31 million in funding.

[via East Bay Express]

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  • webmastere
    Www.drzahrahakim.com......We are experiencing unfair treatment from Yelp also. Our business has some negative reviews posted on Yelp which as a public business is regrettable but par for the course. The reviews are either fictitious or innaccurate, but hey thats free speech.......However, any and I mean any of the many positive reviews our clients leave for us are removed by Yelp. How can they validate the negative reviews more highly than the positive ones.

    Also how can they remove these negative reviews and include the positive ones for a 299$ a month fee. Is this tax deductable?? We are very saddened by Yelp. Also very saddened and hurt by the negative reviews but with Yelp's participation we are getting scared to turn the computers on. If you have similar a experience we would like to hear from you. Contact webmaster@extraordinarysmile.net.

    Also have you noticed there is no front end to Yelp, no direct contact page. Also have you noticed the language used on the site for guidelines and use is also confrontational and inflamatory.

    It is fine in our age for programmers to develop social utility sites, there are a plethora of them with Facebook, Myspace, Twitter et. al. But Yelp comes across as independant, aggressive and sadly of the impression it is above the law.

    We are deeply concerned about Yelp. Minus a million stars so far.

    Also how can a social utitility site
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