Do Bad Reviews Kill Companies?

Marques Brownlee
16 Apr 202413:27

Summary

TLDRThe video script discusses the impact of product reviews on companies, particularly in the context of negative reviews. The speaker, a seasoned reviewer, emphasizes the importance of honesty in reviews and how they serve both potential consumers and the companies producing the products. He recounts his experiences with the Fisker Ocean car and the Humane AI Pin, highlighting that while negative reviews can draw attention, they do not single-handedly cause a company's downfall. Instead, he suggests that the quality of the product itself is the true determinant of a company's success or failure. The reviewer also clarifies that his goal is to provide informative, educational, and entertaining content, and that he has no vested interest in the companies he critiques. He concludes by acknowledging the challenges faced by innovators and the role of reviews in reflecting and potentially accelerating the market's response to a product's quality.

Takeaways

  • 🎨 **Art of Selection**: The process of choosing which products to review is complex and requires a product to stand out as particularly good or bad.
  • 📉 **Impact of Reviews**: Negative reviews can lead to discussions on whether they cause companies to fail, but it's important to consider the product's quality.
  • 🚗 **Fisker Ocean Case**: The reviewer had a poor experience with the Fisker Ocean, and despite a negative review, the company's issues were already evident and widely recognized.
  • 🔍 **Definition of a Review**: A review is an honest impression of a product's quality and functionality as experienced by the reviewer.
  • 💬 **Honesty in Reviews**: The credibility of reviews relies on their honesty, which in turn can lead to companies improving their products.
  • 📱 **Razer Phone Example**: The reviewer's criticism of the Razer Phone's vibration motor led to an improvement in the sequel, demonstrating the value of honest feedback.
  • 👀 **For the Audience**: Reviews are made for the consumers who rely on them to make informed purchasing decisions.
  • 🌟 **Entertainment Value**: Many viewers watch reviews not because they are considering a purchase, but for the informative and entertaining content.
  • 🚫 **No Sugarcoating**: The reviewer refuses to downplay issues or omit problems with products, even if it may impact the company negatively.
  • 📈 **Stock Prices and Reviews**: A company's stock price is not the reviewer's concern, and a decline in stock price is often indicative of deeper issues within the company.
  • 🤝 **Respect for Innovation**: The reviewer expresses admiration for those who create new products, but maintains that their reviews are for the consumers, not the companies.

Q & A

  • What is the primary criterion for a product to be considered for review by the speaker?

    -A product must reach a certain level of interest or be exceptionally good or really bad to be considered for review.

  • What is the speaker's stance on the impact of negative reviews on companies?

    -The speaker believes that bad products, not bad reviews, are what lead to companies failing. Reviews are merely an acceleration of what was already happening with the product's market performance.

  • According to the speaker, what is the definition of a review?

    -A review is someone's impression of a product after using it, sharing their thoughts on whether it's good or not and how well it worked.

  • Why does the speaker emphasize the importance of honesty in reviews?

    -Honesty in reviews is crucial because it provides the basis for trust and utility. It ensures that the feedback is truthful and useful for both the companies and the consumers.

  • What was the speaker's experience with the Razer Phone?

    -The speaker had a negative experience with the Razer Phone, particularly criticizing its vibration motor. However, in the follow-up model, the company improved the vibration motor, demonstrating the impact of honest feedback.

  • How does the speaker justify the importance of reviews for the audience?

    -Reviews are important for the audience as they help in making informed decisions before purchasing a product. They provide insights that viewers might not be aware of otherwise.

  • What is the speaker's perspective on the role of reviews in relation to a company's stock price?

    -The speaker is indifferent to the stock price impact and focuses solely on providing an informative and honest review. They believe that the stock price is influenced by various factors, and a review is just one piece of the puzzle.

  • Why does the speaker believe that multiple reviews of a product are valuable?

    -Multiple reviews provide a more comprehensive understanding of the product. If different reviewers identify similar issues, it reinforces the notion that those issues are likely genuine and not isolated incidents.

  • What was the speaker's experience with the Humane AI Pin?

    -The speaker found the Humane AI Pin to have several issues, including poor battery life, overheating, and a weak laser projector. Despite these criticisms, the speaker aims to be fair and informative.

  • How does the speaker address the accusation that their review might have negatively impacted a company?

    -The speaker argues that it's important to look at the bigger picture, including the product's overall reception and other factors influencing the company's situation. They emphasize that their duty is to their audience, not to the companies.

  • What does the speaker suggest is the real danger to companies when it comes to reviews?

    -The real danger to companies is not the negative reviews themselves but the actual quality of the product. If a product is genuinely good, negative reviews are less likely to lead to the company's downfall.

  • Why does the speaker feel that creating new products is something to be respected?

    -The speaker respects the effort and innovation that goes into creating new products because it's a challenging process that can potentially lead to life-changing innovations.

Outlines

00:00

📚 The Art of Selecting Products for Review

The speaker discusses the process of selecting products for review, emphasizing that only those that are exceptionally good or bad are considered. They mention the impact of reviews on companies, using the Fisker Ocean and Humane AI Pin as examples. The speaker also questions whether bad reviews or bad products are the real culprit when a company fails. They stress the importance of honest reviews and how they can lead to product improvements, as demonstrated by their experience with the Razer Phone.

05:01

🎥 The Role of Reviews in Consumer Decision-Making

The speaker explains that reviews serve not only those who are considering a purchase but also a broader audience interested in informative and entertaining content. They recount how their channel began with reviewing a laptop and discovering an unnoticed feature. The speaker acknowledges that many viewers watch reviews without the intention to buy, seeking an engaging video experience. They also address the question of whether a single negative video review can lead to a company's downfall, using the Fisker Ocean as an example, and argue that multiple factors contribute to a company's success or failure.

10:02

💡 Honest Reviews and Their Impact on Product Development

The speaker focuses on the importance of honest reviews, stating that their purpose is to inform and educate viewers. They discuss the Humane AI Pin, highlighting its shortcomings and the importance of providing a fair and informative review. The speaker refutes the notion that their review alone could harm a company, pointing out that they are not the only reviewer and that the product's quality is the key factor. They also discuss the responsibility reviewers have to their audience rather than to the companies, and the significance of delivering truthful feedback to accelerate necessary changes in product development.

Mindmap

Keywords

💡Product Review

A product review is an evaluation of a product's features, performance, and value. It is typically based on the reviewer's personal experience and aims to provide potential buyers with information to make informed decisions. In the video, the reviewer emphasizes the importance of honest and independent reviews, stating that they are crucial for consumers and can lead to improvements in the product, as demonstrated by the Razer Phone example.

💡Negative Reviews

Negative reviews are assessments of a product that highlight its shortcomings and unsatisfactory aspects. The video discusses the impact of negative reviews on companies, questioning whether bad reviews or bad products are the true cause of a company's failure. The reviewer argues that if a product is genuinely good, negative reviews are unlikely to lead to the company's downfall.

💡Stock Price

The stock price represents the market value of a single share of a company's stock. In the context of the video, the reviewer mentions the correlation between negative reviews and a company's stock price, specifically addressing the misconception that a single negative review can cause a stock price to plummet. The reviewer clarifies that multiple factors contribute to a stock's value, and a review is just one piece of the puzzle.

💡Honesty in Reviews

Honesty in reviews refers to the practice of providing unbiased and truthful feedback about a product. The video stresses that honest reviews are essential for consumers who rely on them to make purchasing decisions. The reviewer gives an example of how honest feedback on the Razer Phone led to improvements in the sequel, demonstrating the value of truthful assessments.

💡Consumer Interest

Consumer interest refers to the level of attention or desire that potential buyers have for a particular product. The video mentions that products need to reach a certain level of interest to be considered for review. This concept is important as it filters out products that are merely 'meh' and highlights those that are exceptional or exceptionally poor, thus warranting a review.

💡Product Improvement

Product improvement involves making changes to a product based on feedback to enhance its quality or performance. The video uses the Razer Phone as an example of how honest reviews can lead to product improvement. The company addressed the criticism regarding the phone's vibration motor in subsequent models, showing that reviews can have a positive impact on product development.

💡Bankruptcy

Bankruptcy is a legal process that involves a company being unable to pay its debts. In the video, the reviewer discusses the misconception that a negative review can lead a company to file for bankruptcy. The reviewer argues that while a review might coincide with a company's financial struggles, it is the product's quality, not the review, that is the primary factor in the company's failure.

💡Investor Perception

Investor perception refers to how investors view the potential risks and rewards of a company's stock. The video touches on how factors like stock price warnings and overall market sentiment can influence investor perception, which in turn affects the stock price. The reviewer asserts that their reviews are not aimed at influencing stock prices but rather at providing honest feedback to consumers.

💡Product Quality

Product quality refers to the overall excellence of a product based on its design, functionality, and durability. The video emphasizes that the quality of a product is the primary determinant of its success, not the reviews it receives. The reviewer suggests that if a product is truly good, negative reviews will not significantly impact its sales or the company's viability.

💡Disclosure

Disclosure in the context of the video refers to the transparency of the reviewer regarding any potential conflicts of interest, such as investments in the companies they review. The reviewer makes it clear that they are not invested in any of the companies whose products they review, ensuring that their reviews are unbiased and solely focused on providing value to the viewers.

💡Clickbait

Clickbait is a sensationalized or misleading title or thumbnail used to attract clicks on a video or article. The video discusses the use of clickbait in the title and thumbnail of a review, acknowledging that while it may seem overly dramatic, it serves to grab the attention of viewers who have not yet heard about the product. The reviewer defends their use of clickbait as a means to draw in an audience and deliver a thorough, honest review.

Highlights

The process of selecting products for review is an art form, requiring products to reach a certain level of interest or quality.

Negative reviews and their impact on a company's survival are a topic of discussion, questioning whether bad reviews or bad products are more detrimental.

The Fisker Ocean review and the Humane AI Pin are cited as examples where negative reviews coincided with company struggles.

The speaker argues that if a product is genuinely good, negative reviews shouldn't lead to a company's downfall.

Reviews are defined as honest impressions of a product's quality and functionality.

The importance of honesty in reviews is emphasized, as it drives improvement and provides value to consumers.

The Razer Phone example illustrates how honest feedback can lead to product improvement.

Reviews serve not only potential buyers but also those interested in informative and entertaining content.

The speaker clarifies that reviews are for viewers, not for the companies, aiming to provide an honest assessment.

The Fisker Ocean is described as a terrible car with numerous issues, which the reviewer believes contributed to its poor reception, not just the review itself.

The impact of a single review on a company's stock price is questioned, with the suggestion that multiple factors are at play.

The speaker asserts that they have no vested interest in the companies they review and are solely focused on creating informative content.

The Humane AI Pin is criticized for its shortcomings, but the reviewer defends their approach as fair and informative.

The reviewer emphasizes that they are not sugarcoating their opinions to protect companies, especially when products are expensive.

The speaker discusses the responsibility of reviewers to be thorough and truthful, even when products are flawed.

The video concludes with the notion that honest reviews merely accelerate the inevitable outcome based on the product's quality, not the reviews themselves.

Transcripts

00:00

- All right, I review a lot of products, right?

00:03

I've talked about hundreds,

00:05

maybe thousands of products at this point,

00:08

but as many videos as I've made about products,

00:10

there are way more products out there

00:12

in the world that exist.

00:13

So the process of selecting which products

00:18

to even review in the first place

00:20

is like an art form to itself.

00:21

Most products are just,

00:23

meh, they're fine.

00:25

Like they exist,

00:26

they get made, they're fine, whatever.

00:28

So they have to reach a certain level of interest

00:31

or being really good to even be considered for review,

00:36

or sometimes really, really bad.

00:40

So there's been a lotta

00:41

interesting discourse lately on this topic.

00:44

There will be, you know, some negative reviews,

00:46

and then a company will eventually go out of business.

00:49

And then the internet poses the question,

00:52

"Do bad reviews kill companies?"

00:55

Do bad reviews kill companies?

00:59

Or do bad products kill companies?

01:05

Yeah, I do have a lot of thoughts.

01:06

So two of the biggest examples that have been pointed to,

01:09

especially on Twitter,

01:10

were the Fisker Ocean review that I did

01:13

and the Humane AI Pin from a couple days ago.

01:16

So the Fisker saga was pretty well documented,

01:19

but in case you missed it,

01:20

I reviewed a car,

01:22

I had a pretty horrible experience with it,

01:24

documented it, published the review

01:26

on the Auto Focus channel,

01:28

and then a few months later,

01:30

the entire company appears to be on life support,

01:33

like likely filing for bankruptcy soon.

01:35

And now this startup, Humane, you know,

01:39

they dropped their first product, this pin.

01:41

I review it, it's not super positive.

01:43

A lot of people are saying the same thing,

01:46

and I don't even think Humane is going anywhere, by the way.

01:48

But I think there is some pretty simple logic we can use

01:52

to decipher what the real danger is to these companies,

01:55

which is, do you still get a bunch of negative reviews

02:00

and then die as a company

02:02

if the product is actually really good?

02:05

But you know what, let's back up for a second.

02:07

What is a review?

02:09

Little pet peeve of mine is I think people

02:10

misuse or overuse that word a lot,

02:13

but a review is just, somebody uses the product

02:16

and then just delivers their impressions

02:18

on whether they think it's any good or not,

02:20

how well it actually worked.

02:21

And if their honest opinion is if it's good,

02:23

then that's the review.

02:24

If it's bad, that's the review.

02:26

That's basically it.

02:27

And so I've been a advocate of good independent reviews

02:30

for what feels like forever now.

02:32

But the thing about reviews is if they're not honest,

02:37

then they're basically useless.

02:39

I really strongly feel like

02:41

everything that comes from a review,

02:43

all the consequences and everything that comes around it,

02:45

everything in the world of and ecosystem of reviews

02:49

depends on the review being truthful

02:52

and actually honest about things.

02:54

So, I'll just give you an example.

02:55

I've told this story before,

02:56

but years ago I remember

02:58

I reviewed the first Razer Phone when it came out.

03:01

So Razer, gaming company, they make lots of stuff.

03:03

They were getting into smartphones for the first time.

03:05

So they made a phone

03:06

that appeals to the same target demographic of gamers.

03:09

So, you know, it had a bunch of upsides and downsides.

03:12

Obviously gaming focused features,

03:13

so it's got like front-facing speakers

03:15

and a high refresh rate.

03:16

The battery's pretty big, but also the camera was weak.

03:20

And I specifically, I remember,

03:22

the vibration motor was horrible.

03:24

And I remember calling it out.

03:25

I remember saying this.

03:26

Also the vibration motor in this phone, trash.

03:29

Straight trash.

03:30

I'm gonna call myself so you can hear this.

03:33

(phone ringing and vibrating)

03:38

(phone ringing and vibrating)

03:42

It sounds broken like it's,

03:44

but it sounded that way out the box since day one.

03:46

So that is the Razer Phone.

03:47

Just one of the worst vibration motors

03:49

I've ever experienced in a new phone.

03:52

So, okay, fast forward a year, right?

03:55

I'm at a briefing, it's in New York City,

03:57

it's for the Razer Phone 2.

04:00

And so they're walkin' me

04:01

and some other people through this new phone they've made,

04:03

and they've got a bunch of changes.

04:04

It's got a glossy back.

04:06

They added wireless charging now.

04:07

The logo glows and like the speakers are better

04:10

and all this stuff, and they're talkin' us through it.

04:12

And then the guy turns to me and he says,

04:14

"And Marques, you gotta try

04:16

"the new vibration motor in this phone."

04:20

And it's such a niche thing,

04:21

but, sure enough, I try it, and it's way better.

04:25

And that's, to me,

04:28

that's a big part of what reviews are all about.

04:30

That honest feedback turned into actually action

04:33

for the company to make it better.

04:35

So people who bought the first one

04:36

knew what they were getting into,

04:37

and people who bought the second one

04:39

actually benefited from that.

04:41

So that's number one, honesty obviously super important.

04:43

But the second thing is these reviews

04:47

are also definitely for the people

04:50

that are watching them and consuming them.

04:53

So you've probably been in this situation

04:54

when you're about to buy something

04:56

and you just wanna double check,

04:57

so you hop on YouTube, you search it up,

04:59

watch a couple videos about the product,

05:01

just to make sure you're not missin' anything,

05:03

and then you either decide on the moment

05:05

or later that day, like, okay,

05:06

yeah, I'm definitely gonna buy it.

05:08

We've all been there.

05:09

That's the reason,

05:11

that's exactly how this YouTube channel started.

05:14

Like, my first ever tech video was reviewing a laptop,

05:18

but specifically, I bought the laptop

05:20

with my allowance money in high school,

05:22

and I found a Windows Media Center remote

05:24

in the PCI slot that wasn't in any of the other reviews.

05:27

So the first thing I decided to do

05:29

was talk through it in a video

05:30

so that anyone else who bought the laptop after me

05:33

would know about it.

05:34

So you're thinking about buying a thing,

05:35

you watch a couple reviews of the thing,

05:38

you learn everything you need to know, boom, success.

05:40

But here's where it gets a little bit interesting.

05:43

I do have a bit of an extra dimension

05:45

on my hands with these videos,

05:47

because I know that there's no way

05:50

that every single person watching a review

05:53

of every single product

05:55

is one of those people who was considering buying it.

05:58

I get that comment actually in person all the time.

06:01

"I watch the reviews even though

06:02

"I'm not buyin' any of this stuff."

06:03

So I know that a lot of people,

06:05

in fact, most people watching these videos,

06:07

are actually just here to watch an interesting, informative,

06:12

good video in general, an entertaining video.

06:16

And so the way that I satisfy those things

06:20

is much more subjective, I think.

06:22

Like everyone has a different way they do it.

06:24

Everyone has a different target demographic,

06:26

but that's a little bit of a new dimension.

06:28

So then I think if we go back to the original question.

06:29

So can a video kill a company?

06:34

I'll use the Humane and Fisker examples specifically.

06:39

The Fisker Ocean was a terrible car.

06:42

It is a terrible car.

06:43

I've reviewed about 40,

06:45

50 different cars in the past few years,

06:48

made videos about many of them.

06:50

This is the first one where I genuinely

06:53

couldn't wait to be done driving it.

06:55

Like it just had tons of problems,

06:57

bugs, missing features, safety issues.

07:00

Like it's just bad, right?

07:01

So I review the thing,

07:02

I give people what I feel is a fair assessment

07:06

that also doubles as a warning not to buy this bad car.

07:10

So hopefully it's entertaining and informative

07:12

to the majority of people who weren't

07:14

thinking about buying the car,

07:15

but also that it is as honest as possible

07:18

with the people who are.

07:19

And maybe a week or two later,

07:21

the company's stock price is plummeting to an all-time low

07:25

and they appear to be like filing for bankruptcy.

07:29

Cue the internet, going nuts,

07:31

which I guess I get it.

07:33

Like obviously it makes a nice headline.

07:35

Like, oh, this review came out and it killed this company.

07:38

This review bankrupted all of Fisker, maybe.

07:42

Like there was a whole Morning Brew thread

07:43

on how Fisker handled this video so poorly

07:46

that they're now gonna go bankrupt because of it.

07:48

Also, there were whole stock investments theme channels

07:52

saying this was like a paid promoted attack

07:55

against the Fisker stock price.

07:57

Like it got pretty crazy.

07:58

But did one review kill the entire company?

08:04

I would say to zoom out a bit.

08:07

I would really...

08:08

I think it's important to zoom out a bit, actually.

08:10

First of all, I was not the only one

08:11

to review the car, not even close.

08:13

And so yes, the stock price did drop after my video,

08:16

but the stock was in free fall

08:18

for many, many months before my video, too.

08:21

And if you zoom out on YouTube

08:22

or in the car review space in general,

08:25

I was far from the only person saying these things

08:27

about the car for all of these months.

08:29

Many other reviewers had been having a plethora of issues,

08:32

even stuff that I didn't have with this thing.

08:34

I actually, I feel like that might be

08:35

the easiest way to tell if a review is honest or not.

08:39

Like,

08:41

we're all reviewing the same product basically.

08:45

We all have the same thing,

08:46

so we're all gonna find a lot of the same things.

08:48

We're all eventually going to have

08:49

a lot of the same upsides, downsides.

08:51

If there are issues they may eventually surface.

08:54

So yeah, they're probably gonna agree with each other.

08:58

A bunch of honest reviews.

08:59

They'll all say a lot of the same stuff.

09:01

Oh, and also, in the U.S. the stock price,

09:03

there's this thing where if a stock, what is it?

09:06

If it's below a dollar for however many days in a row,

09:11

then they'll get a warning that they may be de-listed

09:13

and they have six months to get the stock price

09:15

back up over a dollar.

09:17

And Fisker had just received that notice,

09:21

right around the same time that my,

09:23

I think right before my video came out, actually.

09:25

And if you're an investor, you're looking at that,

09:27

that's the type of stuff that really tanks the stock price,

09:30

if you're askin' me.

09:31

And if you're askin' me personally,

09:33

I literally don't care what the stock price is

09:36

of any company, of any product I review.

09:39

I just don't care. (chuckling)

09:42

And so if I'm talking about a product

09:44

that will never have anything to do with

09:46

what I say about the product,

09:47

and I hope that's not true about other people either.

09:50

And I shouldn't even have to say this.

09:51

I'm not invested in any companies that I cover.

09:54

It's just a matter of trying to make an informative,

09:59

educational, and honest video review.

10:02

That's my goal.

10:03

My only goal is to do that.

10:04

And I don't have any duty to any of the companies

10:06

whose products I cover.

10:08

It is only to the people watching the videos.

10:09

So now, okay, fast forward to, you know, pretty recently,

10:12

the Humane AI Pin comes out.

10:17

A lot of the same stuff, right?

10:18

Like this pin has a lot of missing promises that,

10:21

you know, the things it does,

10:23

it doesn't actually do super well.

10:24

The battery life is bad, it overheats.

10:27

The laser projector is kinda bad.

10:28

Like the list just goes on and on.

10:30

I tried to be as fair as possible

10:32

and as informative as possible,

10:33

but I'm also absolutely not about to sugarcoat

10:36

or leave anything out to protect any company's

10:39

$700 device with a monthly subscription.

10:42

Not into that.

10:43

But yet, even still,

10:44

there are some threads blowing up saying

10:46

it's extra bad what I did to this poor company.

10:49

And you know, maybe you could argue

10:51

since this is the biggest channel that covered it,

10:54

maybe there's some extra impact there.

10:56

But again, I would say to zoom out.

11:00

Just zoom out again.

11:02

I was not the first, actually, even,

11:04

to cover the Humane Pin,

11:05

but I'm also far from the only one to talk about it.

11:07

And even a little inside baseball,

11:08

when a product comes out that's this notable or this bad,

11:14

which isn't very often, a lot of reviewers,

11:17

like it's a very...

11:19

It's stressful.

11:20

You wanna make sure you get everything right.

11:21

A lot of us are literally trading notes

11:23

and like trying to figure out,

11:24

like when mine died in two hours

11:26

and overheated on my chest without doing anything,

11:28

I thought it was like an issue with mine,

11:32

and I was texting a couple others,

11:33

and sure enough,

11:34

they're having the same things happen to them.

11:36

So we're all trying to be as thorough as possible

11:40

and making sure reviews are truthful.

11:42

And so that's how you get a bunch of truthful reviews.

11:44

Now you could argue,

11:45

and I think the guy on Twitter did,

11:47

that the packaging was too clickbaity.

11:50

And I totally get that.

11:51

But I also stand by our title and thumbnail,

11:54

and especially the end of the title.

11:56

But keep in mind the dimension

11:58

that most of the people who see this in their feed,

12:02

in their subscription box,

12:04

have never heard of the Humane AI Pin.

12:06

And this will be the first time they hear about it,

12:08

and they click on it, hopefully,

12:10

and then they're delivered with a thoughtful,

12:13

well-considered, balanced, and honest, and entertaining,

12:16

and informative video that happens to be a review.

12:19

So look, I've reviewed a lot of bad products in my day.

12:24

You might remember some of them.

12:25

You might remember the Dyson headphones

12:27

or the Red Hydrogen One or the Pixel Slate,

12:30

or the HTCU Ultra.

12:32

The list goes on.

12:33

But one thing has definitely been clear

12:36

and consistent throughout all of this,

12:37

which is anytime the company goes under,

12:41

you don't get those bad reviews

12:44

without the product being bad to begin with, obviously.

12:48

I have a massive amount of respect and appreciation

12:51

for people and groups of people

12:53

who are actually making new stuff, like building products.

12:57

That's the hard part, at the end of the day.

12:58

And we get to get a whole bunch of new exciting things

13:00

that might change the world, and that's really exciting.

13:03

But my reviews technically are not for them.

13:08

All that any honest review actually does

13:12

is just accelerate whatever was already going on.

13:17

Think of it that way.

13:19

Okay, thanks for watchin'.

13:20

Catch you guys on the next one.

13:21

Peace.

13:23

(upbeat relaxed music)

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