Will Negan's Biological Warfare Plan Work on 'The Walking Dead'?

In "Dead or Alive Or," Negan comes up with a plan to use walker blood and guts as a weapon to defeat Rick, or at least scare his group to get in line and play nice. How exactly will this work? Is this a good idea? Will it really scare people enough to make them fall in line? Or will it just piss them off more and make the war go on longer?