Facebook’s outage has people rethinking how they make money online

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  • Influencers who have long relied on Instagram and Facebook to connect with users, advertise and sell products are reconsidering posting content after Monday’s outage.
  • Businesshala spoke with ten creators and small business owners who use a combination of Instagram, Facebook and WhatsApp, and said losses range from a few hundred dollars to as low as $5,000.
  • Facebook and Mark Zuckerberg pushed investments in content creation to woo influencers with the likes of TikTok.

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

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Francis, who runs a consulting company that helps people make money through vending machines, said, “We’re so fixated on what we’re doing and that’s fine, but we need a backup plan, especially When we’re relying too much on technology.”

Influencers, who have long relied on Instagram and Facebook to connect with fans, advertise and sell products, reconsider where they post their content on Monday after the company’s platform suffered a loss when it was offline for several hours. are doing.

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Businesshala spoke to 10 online creators and small business owners who use Facebook, its Instagram or WhatsApp services, or a combination of all three, for this story. Their estimated losses ranged from a few hundred dollars to $5,000 each during Facebook’s shutdown. was till From sales, affiliate links, sponsored posts and product launches.

It is a demonstration of the huge impact Facebook has on the online economy. Even a small outage means losses for those who depend on Facebook services to do their jobs or to advertise their products. But the six-hour record outage is even worse.

Zuckerberg’s investment in creators and small businesses

Facebook’s vice president of infrastructure Santosh Janardhan apologizes for the massive outage blog post Monday late. Janardhan blamed “configuration changes on the backbone router” for taking services down, but did not specify what caused the change.

more than 200 million businesses actively use Facebook Tools and many content creators rely on Instagram for sponsored posts, affiliate links and sales revenue. And the outage came as CEO Mark Zuckerberg and Facebook made an aggressive push to encourage and lure creators from TikTok, Snapchat and other social media platforms.

Last year, Instagram introduced a shorter-length video feature called Reels to compete with TikTok, and Zuckerberg recently said the company would pay $1 billion by 2022 to users who follow both Facebook and Instagram. create content for. Facebook also said it won’t cut creator features like online events and fan subscriptions until 2023, and announced new ways they can make money on Instagram in April.

“Investing in creators is not new to us, but I am excited to see this work expand over time,” he said. wrote on facebook earlier this year.

Along with the refund, Facebook and Instagram should offer something like double exposure for those who prepaid for advertising on Monday, said Michael Heller, CEO and founder of Talent Resources, a marketing agency that deals with influencers.

Alexa Vogue, Vice President of Brand Partnerships at TTPM Influencer Talent Management, said most companies and influencers have plans for Monday, which in case of glitches are planned until Tuesday or Friday. She goes on to say that an outage on YouTube or TikTok, where her subscribers get paid per view, would have caused more financial losses.

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

need to diversify

Many creators and small businesses say Instagram is the platform of choice. It’s easy to connect with users through direct messages and stories, and it offers a more focused community of dedicated followers who convert into sales.

Now, the majority said they would focus on building their website and diversifying what platform they’re using, Businesshala said. Some used Twitter, TikTok and email to drive sales and connect with audiences during the shutdown.

Francis, who runs the consulting company, plans to use LinkedIn and email lists, a tool that helped him make some sales during Monday’s outage.

For Sanchez, who operates a small candle shop, the outage came during the busy season to prepare for the holidays. She regularly uses Instagram to tag products, update customers through stories, and send people to her Shopify store.

“That’s where I’m doing my business,” Sanchez said. “I’m not making hundreds of sales a day. I’m a small candle company but this is my full-time job. So even though I’ve made three sales that I potentially lost, it’s important to me.”

He used Monday to reach out to customers and build up his email list in preparation for future disruptions so he could better communicate with customers.

Elliot Elkhoury, who sells resources to real estate investors, estimates he lost $3,000 to $5,000 on Monday amid missing traffic and an inability to run ads on his platform and social media.

Between advertising dollars and branded content, Heller suspects the damage since Monday was in the hundreds of millions. He said the potential for financial loss to clients ranged from $3 million to $4 million dollars.

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

John Eringman, a financial content creator who has over 50,000 followers on Instagram and 1.2 million on TikTok, is estimated to have lost a few hundred dollars. This comes from a combination of book sales and face-to-face coaching sessions through his Instagram.

Eringman has diversified his business by building a following on TikTok and a website. But if the outage extended until Wednesday, he could have lost $2,500 on sponsored posts for Instagram and TikTok.

“There’s a life span to social media,” he says. “Make sure you own your audience, rather than letting Facebook or Instagram own your audience.”

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