Big money, big money!
In order to obtain funding, every tech startup has to show investors what their financial strategy is – some begin as free communities that turn premium, others are ad supported, but in an interesting twist, Pinterest has opted for a different alternative wherein they use a service called Skimlinks, according to VentureBeat, which swaps out links behind product pins and replaces the source link with an affiliate link.
For example, any product pinned from Amazon will automatically have a replaced link that becomes an affiliate link so that Pinterest gets a cut if someone makes a purchase from their referral. Some are calling this move questionable and deceptive, others have no problem with the blossoming startup to make money through affiliate dollars.
Josh Davis at LLsocial.com was first to notice the sneaky switch, noting, “I, like many people, don’t have a problem with Pinterest making money off of user content. The links are modified seamlessly so it doesn’t affect the experience. Pinterest likely should disclose this practice to users even if they aren’t required to do so by law, if only to maintain trust with their users.”
Why not the Twitter approach?
As it stands, it appears that only links leading to a retailer that has an affiliate program (like Amazon, eBay, etc.) will have the original source code altered, but if Pinterest is not forthcoming with this revenue strategy in a way that users are aware of and accepting of, what covert moves will be made next? The albatross around Facebook’s neck that they continue to skirt is privacy issues, ignoring user preferences (or “rights” as advocates will claim) – will Pinterest’s albatross be secret revenue streams?
We all anticipated that Pinterest would take a page from Twitter’s playbook and have promoted pins or promoted boards, placing brands’ paid pins in a fixed position or mixed in with people you are already following, but this is an interesting twist indeed. Do you think it is okay for Pinterest to swap out the original source code in pins you create, or are they within their rights to make money off of products you share?
Tell us in the comments if you would like an invitation into Pinterest, we will share ours right away. Please connect with us on Pinterest as we continue pinning away: