Creators and small businesses affected by the shutdown of Facebook and Instagram

Texas News Today

Lakinya Francis has a LinkedIn account, Haley Sanchez has expanded her email list, and Michael Elephant plans to build her own website.

People who make money from vending machines say, “We stick to what we’re doing, and that’s fine, but especially if you’re heavily dependent on technology, you need to have a backup plan.” Francis, who runs a consulting firm backing the company, said.

Influencers who use Instagram and Facebook to connect with fans to promote and sell their products have a place to post content after losing money when the company’s platform is offline for hours on Monday goes. I am reconsidering.

CNBC spoke to 10 online creators and small business owners using Facebook, Instagram, WhatsApp services or a combination of all three. Estimated losses during Facebook’s outage ranged from hundreds of dollars to more than $5,000, respectively. From sales, affiliate links, sponsored posts and product launches.

This shows the impact Facebook is having on the online economy. Even the slightest outage can mean a loss for those who rely on Facebook services to do work or promote their products. But the record 6-hour outage has intensified.

Zuckerberg’s investment in creators and small businesses

Facebook’s Vice President of Infrastructure, Santosh Janardhan, apologized for the massive outage in a blog post late Monday. Janardhan accused “backbone router configuration changes” of stopping the service, but did not specify what changes were made.

More than 200 million companies are actively using Facebook tools, and many content creators rely on sponsored posts, affiliate links, and Instagram for revenue. And the outage came as CEO Mark Zuckerberg and Facebook actively pushed to encourage and appeal to creators like TikTok, Snapchat and other social media platforms.

Last year, Instagram launched a short video feature called Reels to compete with Tiktok. Zuckerberg recently announced that he would pay $1 billion to users creating both Facebook and Instagram content by 2022. Facebook also said it won’t be reducing Creator features like online events and fan subscriptions until 2023, and in April announced a new way to make money on Instagram.

“Investing in creators is nothing new for us, but we’re excited to gradually expand this work,” he wrote on Facebook earlier this year.

Facebook and Instagram are the CEO and founder of influencer marketing agency Talent Resources, which is required to give prepaid advertisers double exposure on Monday in addition to refunds. Michael Heller said.

Alexa Vogue, vice president of brand partnerships at TTPM Influencer Talent Management, pushed most companies and influencers planning to post their campaigns to Monday in case of problems on Tuesday or Friday. She says the suspension of YouTube or TikTok, where subscribers are paid for each view, would have caused more financial losses.

“Yes, it was a wake-up call, but in a grand scheme of things, a successful influencer will always succeed,” she said.

need to diversify

Many creators and small businesses say Instagram is the platform of choice. It offers a more focused community of enthusiastic followers who can easily connect with users through direct messages and stories and drive sales.

At present, the majority said they would focus on building their websites and diversifying the platform they are using, said an influencer spoken to by CNBC. .. Some people used Twitter, TikTok and email to increase sales and connect with their audience during the shutdown.

Francis, a consulting firm, plans to take advantage of LinkedIn and mailing lists, tools that help boost sales during a power outage on Monday.

During the busy holiday preparation season for Sanchez, who runs a small candle shop, the power went out. She regularly uses Instagram to tag products, update customers through stories, and direct people to Shopify stores.

“That’s where I do my business,” Sanchez said. “I don’t make hundreds of sales a day. I’m a small candle company, but that’s my full-time job. So if I make three sales that I can afford to lose, that’s important to me.”

She used Mondays to contact customers and built an email list for future interruptions to improve communication with customers.

Elliot Elkholi, who sells resources to real estate investors, estimated he lost $3,000 to $5,000 on Monday because traffic on the platform and social media was lost and ads could not be served.

Between advertising costs and branded content, Heller suspects there will be a loss of crores from Monday. He said the financial blow to customers probably ranged from $3 million to $4 million.

Michael Elefante, who runs short-term rentals and teaches others how to run them, estimates losses between $1,500 and $2,500 through affiliate links and paid consultations. Now he will focus on direct mail messaging and his website.

John Ellingman, a creator of financial content with more than 50,000 followers on Instagram and 1.2 million on TikTok, is estimated to have lost hundreds of dollars. This came from a combination of book sales through his Instagram and one-on-one coaching sessions.

Eringman has diversified its business by building followers on TikTok and its website. But if there is a power outage by Wednesday, they could lose $2,500 on Instagram and TikTok sponsored posts.

“Social media has a lifespan,” he says. “Make sure you own your audience, not Facebook or Instagram.”

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