Many people assume that mattress review sites are equal to salesmen in stores, even though they earn a commission every time you purchase a mattress. However, this assumption is a mistake because mattress review sites have no vested interest in selling you a mattress. In fact, most sites do earn money by referring you to a retailer. So, how do you know which mattress review sites are trustworthy? It all boils down to one thing – how much do you trust what you read online?
Casper financed the acquisition of mattress review sites
A few years ago, a company called Casper decided to enter the mattress review business. The company has been selling high-tech mattresses since its founding, and it decided to take on competitors. In 2017, Casper financed the acquisition of Mattress Clarity, a review website with ties to Leesa. The company has now financed the acquisition of three more mattress review sites. The move will make Casper the most well-known brand name when it comes to mattress reviews.
Although a company like Casper may not be the best bed for every sleeper, consumers should still trust their reviews. As of October 2016, the company reported earnings of $156.5 million, up 26.8% year-over-year. It has lost $25.3 million since its February 2020 IPO. In the coming quarter, Casper is not hosting a conference call to discuss its third-quarter financials, but will file a quarterly report with the SEC. It is replacing CEO Derek Krim with Emilie Arel.
Wall Street financed the acquisition of mattress review sites
The acquisition of mattress review sites is an obvious conflict of interest for the companies involved. Mattress companies have a direct relationship with consumers, and that relationship can be complex. These relationships can include joint ventures, holding companies, and common backers. Wall Street has financed the acquisition of mattress review sites to increase their visibility. But does that make the companies’ involvement with the sites inappropriate? We’ll examine how the mattress companies’ interest in such sites could be compromised.
In the process of acquiring mattress review sites, Casper sought to engage with the owners. Casper CEO Philip Krim wrote to the founder of one of the sites, alleging that the site’s owners engaged in unfair practices that cost Casper millions of dollars in potential sales. The companies eventually settled with three mattress review sites and loaned money to a third company to acquire Sleepopolis. Casper was also forced to rethink its business model.
Mattress companies own mattress review sites
If you’re an infrequent mattress shopper, you may not be aware that mattress companies own review websites. They might not be completely honest, but their claims are true enough to attract viewers. However, the bias is often not as obvious as one might think. For instance, a mattress company may be more likely to offer compensation to review sites for a specific brand. This bias can be problematic if the mattress review isn’t based on a fair methodology.
Fortunately, there are some ways to avoid the conflict of interest that often comes with owning mattress review sites. First, try to avoid companies that sponsor and advertise their products. While it may not be as obvious as it first seems, you can check the terms of the website. Many companies offer free trials and refunds for consumers who are not satisfied. Second, look for warranties. A warranty can indicate the quality of a mattress, and it can help you figure out if you need to return or replace it. Third, consider bed-in-a-box companies.
How to find unbiased mattress reviews
It can be difficult to distinguish between unbiased and biased mattress reviews. One way to avoid bias is to read multiple testimonials from different people. While reading a single review can give you a great idea of what people are saying about a mattress, it won’t give you a clear picture of how well the product is going to perform. The best way to find unbiased mattress reviews is to read more than one review and look for videos.
While mattress review sites are helpful, some are skewed because of their relationship with mattress companies. Often, these relationships are simple, such as direct ownership, or more complex, with holding companies, common backers, and cross-ownership. This obvious conflict of interest should be avoided. Instead, search for independent mattress reviews on review sites that are not affiliated with the mattress industry. This will give you an idea of how unbiased a site is and whether the mattress review site is actually a reliable source.