I understand why the ‘pay for play’ model can seem an attractive option for smaller companies looking to generate business but firms that go down this route always tend to get found out. Their credibility is eroded, they cannot attract quality analysts and their business slowly disappears.
Any analyst firm which values its long-term reputation in the market has to ensure that its research is independent (and also seen to be independent: for instance, I’d argue that there’s a greater need for analyst firms which produce sponsored research to be very open about their methodologies so they avoid any suggestion of conflict of interest).
However we do need to be realistic about the economics of the analyst business. Most analyst firms couldn’t exist without vendor cash – be it via sponsored research, consulting projects or speaking engagements.
And so long as analyst firms clearly communicate who is sponsoring their work, I’m fine with that. After all, the old principle of “caveat emptor” must always apply.
But what about:
- the UK company that publishes a company profile – but gives no indication that the piece was commissioned by the vendor (and for which the vendor was effectively given copy approval)
- the analyst that writes blog posts promoting a project that his consultancy is involved in – without disclosing his connection
- the division of a large group that prioritises briefings based on the likelihood of selling reprints of the resulting company profile
- the analysts that use a briefing as an opportunity to pitch their own services
- the global company that says its analysts are more likely to recommend vendor clients to prospective buyers (because the analysts know clients better than those that are non-clients)
- the vertical firm that refuses to take briefings with non-clients because it’s so busy doing consulting work it can only handle briefing requests from clients
- and what about this experience highlighted by the corporate AR team at HP?
Thankfully these kinds of behaviour are limited and the examples are few and far between. But it does still happen.
As analyst relations professionals, we face a challenge. What responsibility do we have for ensuring these practices are stamped out? Are we proactive or do we just refuse to support them? Do we have a ‘quiet word’ in the right ear? Do we out the bad apples in public?
Or do we turn a blind eye – because actually it’s good to know that you can sometimes bung a few quid to an analyst and get something positive written-up about the company we work for?
Further reading on ethics in analyst relations
- display-posts category=”ar-best-practices” include_date=”false” posts_per_page=”30”]
- IIAR> Best Practices Paper: Running an industry analyst briefing
- [GUEST POST] Do’s And Don’ts For Analyst Interactions by Chase Cunningham / Forrester
- 10 things analysts want most
- IIAR Webinar: Introducing CCS Insight – and how they make sense of the connected world
- [GUEST POST] Tips to Ensure a Productive Analyst Briefing
- [GUEST POST] How to Create a More Compelling Analyst Event
- Wrap-up: IIAR Germany 2018 kick-off
- [GUEST POST] What is your product and what does it do? by Adrian Sanabria / Threatcare
- [GUEST POST] Analyst Briefings: The Delicate Business of Client References, by Vicki Jenkins / Nelson Hall
- [GUEST POST] Analyst Briefings: Preparing for Success, by Vicki Jenkins / Nelson Hall
- [GUEST POST] Analyst Briefings: Are you a Strategic Team Member or the Note-Taker? by Vicki Jenkins / NelsonHall
- [GUEST POST] Key Requirements for Vendors When Briefing Software Analysts, by Natalie Petouhoff / Constellation
- [GUEST POST] Maximizing the impact of an analyst briefing – 2 of 2 by Richard Stiennon / IT-Harvest
- [GUEST POST] Maximizing the impact of an analyst briefing, by Richard Stiennon / IT-Harvest
- The hype cycle of Vendor Briefing Requests
- How to structure an analyst briefing?
- [GUEST POST] Vendors: suggestions to maximize briefing value, by Carol Rozwell / Gartner
- [GUEST POST] Briefing tips and best practices from Lisa Rowan / IDC
- Analysts: When you’re looking for a briefing – help me to help you
- On the use of briefing request forms for analyst firms marketing
- Gartner improves the vendor briefing process