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Facebook, the confusing creator of Instagram, has hurt small businesses


Lacinia Francis is creating a LinkedIn account, Haley Sanchez is expanding her email list and Michael Elephant is planning to create his website.

“We’re so determined with what we’re doing and that’s okay but we need to have a backup plan, especially when we rely so much on technology,” Francis said.

Influential people who have long relied on Instagram and Facebook to connect with fans, advertise and sell are reconsidering where they posted their content after the company’s platforms suffered losses while offline for a few hours on Monday.

CNBC spoke with 10 online creators and small business owners who use Facebook, its Instagram or WhatsApp services, or a combination of the three for this story. Each of their estimated losses during the Facebook outage ranged from a few hundred dollars to more than five thousand dollars. From sales, affiliate links, sponsor posts and product launches.

This proves how big the impact of Facebook is on the online economy. Even minor misunderstandings mean the loss of people who rely on Facebook services to get them to work or advertise their products. But the record six-hour distraction is even worse.

Zuckerberg is the creator and investor in small businesses

Facebook infrastructure vice president Santosh Janardhan apologized for the extensive damage in a blog post late Monday night. Janardhan blamed “configuration changes on the backbone router”, but did not specify which services to shut down.

More than 200 million businesses actively use Facebook’s tools, and countless content creators rely on Instagram for sponsored posts, affiliate links, and sales revenue. And the break came when CEO Mark Zuckerberg and Facebook gave an aggressive push to encourage and attract creators from the likes of TicTac, Snapchat and other social media platforms.

Last year, Instagram launched a short-length video feature called Reels to compete with TickTock, and Zuckerberg recently said the company would pay এমন 1 billion by 2022 to users who create content for both Facebook and Instagram. Facebook also said it would not cut back on manufacturers ’features like online events and fan subscriptions until 2023, and in April they announced new ways to make money on Instagram.

“Investing in manufacturers is not new to us, but I am excited to be able to expand this work over time,” he wrote on Facebook earlier this year.

In addition to giving back, Facebook and Instagram should give double exposure to those who prepaid for Monday ads, says Michael Heller, CEO and founder of Talent Resources, a marketing firm that works with influential people.

Alexa Vogue, vice president of TTPM Influencer Talent Management’s Brand Partnership, said most companies and influencers have pushed promotion posts planned for Monday to Tuesday or even Friday. Confusion on YouTube or Ticket, where views are given to its clients, could cause further financial losses, he added.

“Yes it was a wake-up call, but influential people who succeed in successful planning will always succeed,” he said.

Need to bring diversity

Many manufacturers and small businesses say that Instagram is the platform of choice. It’s easy to connect with users through direct messages and stories and it provides a more focused community of dedicated followers that are converted into sales.

Now, the majority have said they will focus on building their website and diversify what platform they are using, the influential CNBC said. Some use Twitter, TickTock and Email to increase sales and connect with viewers during shutdowns.

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

For Sanchez, who runs a small candle shop, there was a break in the busy holiday season. She uses Instagram to regularly tag products, update customers through stories, and divert people to her Shopify store.

“This is where I do my business,” Sanchez said. “I’m not selling hundreds every day. I’m a small candle company but it’s my full-time job. So if I’ve made three sales that I’ve potentially lost, it’s important to me.”

He used Mondays to reach out to customers and create his email list to prepare for future confusions so he could communicate better with customers.

Elliott Elkhoury, who sells assets to real estate investors, estimates he lost সোমবার 3,000 to সোমবার 5,000 on Monday between losing traffic to his platform and social media and his inability to run ads.

Between advertising dollars and branded content, Heller suspects that the amount of damage since Monday is in the millions. Clients ’financial losses probably range from 3 3 million to 4 4 million, he added.

Michael Elephant, who runs short-term rentals, and teaches others how to operate, estimates losses from $ 1,500 to $ 2,500 through affiliate links and paying consultants. Now, he’s going to focus on direct mail messaging and his website.

John Eringman, who has more than 50,000 followers on Instagram and more than 1.2 million financial content creators on Ticket, estimates he has lost hundreds of dollars. It came from a combination of book sales and one coaching session after another via his Instagram.

Eringman has diversified his business by creating tic tac toe and a follower on a website. But if the outrage escalated until Wednesday, he could have lost $ 2,500 in a sponsored post for Instagram and Tic Tac Toe.

“Social media has a lifetime,” he says. “Instead of giving your audience ownership to Facebook or Instagram, make sure you own your audience.”



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