Law #15: The Law of Candor
(This entry is part of a series I am writing on
Immutable Laws of Marketing.)
The Law of Candor says that "when you admit a negative, the prospect will
give you a positive". As usual, the examples from the book are mainstream
- Listerine did it when they acknowledged that their mouthwash tastes
- Avis did it when they acknowledged that they are #2.
- Volkswagen did it when they acknowledged that the "bug" is ugly.
Each of these companies gained a lot when they applied the Law of
Candor. People respect the courage and honesty it takes to admit that not
everything is perfect.
The Law of Candor is another one which is simply not intuitive. Most
marcomm people are terrified of it. Conventional wisdom says that
absolutely everything in your marketing message must be positive. In
fact, a primary function of the marcomm team is to sanitize all public
statements, ensuring that the company never says anything it does not want to
The rules of "marketing speak" are fairly well understood around the
world. All marcomm teams speak this dialect as their first language, which
means that all marketing teams sound basically the same. Almost every
press release starts out with a bunch of mumbo jumbo that nobody ever
reads: "Fiddlesticks Corporation, the leading provider of useless crapola,
announced today that it is incorporating XML Web Services technology into
its line of coffee mugs."
In 2004, it takes a very "special" kind of marketing person to actually
believe that customers cannot see through this kind of spin. People today
are being bombarded with so much advertising that traditional marketing is less
effective than ever before. Sanitized press releases are out.
is in. Drowning in a sea of marketing mumbo jumbo, people admire companies
that choose to be genuine.
An example from here at SourceGear: Most of our sales are "direct", but
we do sell through a number of resellers as well. I don't usually think of
our resellers as terribly strategic, since they account for a very small
percentage of our sales. However, lately I find myself wondering why
SourceGear doesn't sell through Xtras.net. Why am I wondering this?
Because their CEO has a blog,
and a darn good one. I can't say that I agree with everything he says, but
the fact remains: His choice to be genuine makes me want to do
business with his company.
Ignoring the Law of Candor can kill your credibility. Whatever
your negative issue is, everybody already knows about it anyway. If you
don't talk about it, then it will become "the elephant in the room". When
you issue yet another sanitized press release, your customers eagerly read it,
hoping to see some evidence that you have any self-awareness at all. They
ask themselves, "Don't these people realize how awful their mouthwash
As Ries and Trout say in the chapter, "Every negative statement you make
about yourself is instantly accepted as truth. Positive statements, on the
other hand, are looked at as dubious at best."
These dynamics are going on right now for me with respect to SourceGear
Vault, our source control product. A few weeks ago, Microsoft
announced Team Foundation Server, a really cool source control system which will
be shipping sometime next year. It's not too hard to figure out that this
announcement was not good news for SourceGear.
On the day of the Microsoft announcement, I posted some remarks about Team
Foundation Server here on my weblog. While nothing on my blog is truly
written in "marketing speak", this post was very positive, almost to the point
of being sanitized. And not surprisingly, a lot of people didn't believe
me when I said that SourceGear is going to be okay.
Well, it would be silly for me to write about the Law of Candor today without
saying more on this topic. So, I've decided to "practice what I preach" by
making some more remarks about The Future of SourceGear