thread Re: In the News: How would a TikTok ban affect your business? in Community Corner

In the News: How would a TikTok ban affect your business?

PessoAlumni — Wed, 22 May 2024 13:41:05 GMT

Hey Newsies,

Today we’re looking at an article from Forbes reporting on how the passing of a bill banning the use of TikTok in the United States can affect small business owners. I’d love to hear your thoughts and experiences on this!

Forbes: How the TikTok Ban Leaves Small Businesses ‘Devastated’

The article explains that Congress has passed a new bill to essentially ban the social media app TikTok in the US, which can have a massive impact on small businesses. The bill says that within 6 months, the parent company ByteDance must either sell TikTok to a US entity, or shut it down in the US. This is due to security concerns about the app data potentially being used by China.

Some small businesses exist only on TikTok, making their money directly through ads, views, and sponsorships (influencers and affiliates absolutely count as businesses). Even more traditional businesses use it as a platform for marketing and visibility, as well as making a majority of their sales directly through the app. Some hold live sales events, others just link out to their ecommerce page for customers to quickly and easily buy their offerings.

Getting rid of the platform in the US has the potential to completely destroy some of these businesses, and severely limit sales for many more. They are trying to appeal the bill, calling it unconstitutional. So we have to wait and see if it goes through or not.

Some other countries that have fully banned TikTok are Afghanistan, China, India, and Nepal, with others only banning use of it on government issued devices for federal employees.

We didn’t use TikTok for my ice cream shop, but we relied extremely heavily on social media like Instagram and Facebook. I posted at least once every single day that we were open, both standard posts as well as stories. It really made a difference and brought in more new customers and kept our current customers coming back, since our posts with new flavors and offerings kept us top of mind and social feed. If one of those apps were banned, I’m not really sure what we would have done. I might have searched for the next big app and moved my posts there, or I might not have wanted to put in the effort to learn something new, since I didn’t start to go on TikTok even when it was getting big.

What’s your perspective:

How do you use TikTok for your business?
How would a TikTok ban affect things for you?
What would you do if the ban goes through and TikTok shuts down?

Can’t wait to hear your thoughts!
Pesso

This article is for informational purposes and does not constitute legal advice. For guidance or advice specific to your business, you should consult with a qualified legal professional.

Re: In the News: How would a TikTok ban affect your business?

maxpete — Wed, 22 May 2024 14:19:44 GMT

I've been thinking about this topic a lot! While I am not on TikTok, very curious to see how this will effect businesses that utilize the platform.

@DinaLRosenberg I know that you use TikTok a lot to grow your business, would love to hear your thoughts!

Re: In the News: How would a TikTok ban affect your business?

rtfulk — Wed, 22 May 2024 15:56:26 GMT

We use TikTok heavily when we are working a fair, then make casual postings in between fairs. If it was shutdown I don't think it would have a huge impact on our business, because we use so many social media outlets. It’s like the old saying don’t put all your eggs in one basket.

I figure there is some form of TikTok waiting in the wings to jump in if TikTok does get shut down. Everyone will jump on it when and if it happens.

Re: In the News: How would a TikTok ban affect your business?

TCSlaguna — Wed, 22 May 2024 18:59:18 GMT

We haven’t gotten into TikTok yet, but we are starting in June. That’s where the eyeballs are, so I guess we gotta be there.

Re: In the News: How would a TikTok ban affect your business?

Bronze_Palms — Wed, 22 May 2024 19:25:25 GMT

Tiktok is used very differently in my business that Instagram. Instagram is for the entirety of our salon, directly to clients to promote services. Tiktok I have skewed toward business owners, other tanners, and so people can get to know me as a person. People buy from people and that has translated on Tiktok very well.

Re: In the News: How would a TikTok ban affect your business?

doc_choc — Thu, 23 May 2024 14:14:02 GMT

We have dabbled with Tik Toc with minimal impact on the business, so its loss will have minimal impact to us.

I'm feeling heebie-jeebies. The reliance on one channel to drive up to 45% of a businesses revenue would leave me sleepless at night, I wouldn't recommended this for any business from a risk management point, as is demonstrated by the current matter in hand. I would always recommend spreading the risk over multiple sales channels.

Re: In the News: How would a TikTok ban affect your business?

maxpete — Thu, 23 May 2024 14:23:00 GMT

GREAT reminder about not solely relying on one channel, especially something that you don't own.

Re: In the News: How would a TikTok ban affect your business?

maxpete — Thu, 23 May 2024 14:23:37 GMT

Cool to see how you use the two platforms for different audiences. Are you worried about the possible ban?

Re: In the News: How would a TikTok ban affect your business?

maxpete — Thu, 23 May 2024 14:24:11 GMT

Similar situation to my wife's business too. But we haven't made the move yet, and will wait and see how this all plays out.

Re: In the News: How would a TikTok ban affect your business?

maxpete — Thu, 23 May 2024 14:25:10 GMT

Agreed with what you said! Glad that you have diversified a bit with your social platforms. A smart move!

Re: In the News: How would a TikTok ban affect your business?

Hailey — Thu, 23 May 2024 15:56:33 GMT

Why the June start? (specific)

Re: In the News: How would a TikTok ban affect your business?

Hailey — Thu, 23 May 2024 15:57:55 GMT

Who's going to be running the account?! Def share here once its launched

Re: In the News: How would a TikTok ban affect your business?

Hailey — Thu, 23 May 2024 16:00:02 GMT

I love this approach - even if it happened more organically. I see this with accounts i follow on both, where one platform is more editorial/sales and the other is educational/behind the scenes etc.

Re: In the News: How would a TikTok ban affect your business?

maxpete — Thu, 23 May 2024 16:00:38 GMT

Might need to hire you for it!

Re: In the News: How would a TikTok ban affect your business?

HC_Charlie — Thu, 23 May 2024 21:16:27 GMT

I have never used TikTok, so it wouldn't affect my business. I've never been an early adopter and with the cautions about potential spying from overseas corporations, I never wanted to try it. But I recently saw a commercial that was trying to gain support against a ban; it showed a person who said they made big $$$ using it for their business. I was blown away, it was a ton of money, and it made me want to jump on and start using it! But perhaps that large amount is not the usual amount of income seen by most users.

And there always seems to be the "next big thing" in social media and online platforms for gaining followers and business income. I'm not sure how a small business can keep up if they are not tech savvy and into following new media news.

Re: In the News: How would a TikTok ban affect your business?

VanKalkerFarms — Thu, 23 May 2024 23:49:02 GMT

As for my business it will have 0 effect. as for my personal free time it will be detrimental, TikTok and YouTube are top of my viewing. There are so many good creators on TikTok

Re: In the News: How would a TikTok ban affect your business?

Doran — Fri, 24 May 2024 19:35:39 GMT

Same!

I think I will be more productive.

How I heart TikTok but just haven't figured out a way to be successful there business-wise. I don't know that I want to.

But I'll be devastated to lose it as a resource. I've learned a lot of great business books, tips, etc from TT and travel planning is great with the app.

Re: In the News: How would a TikTok ban affect your business?

TheRealChipA — Sat, 25 May 2024 20:49:07 GMT

Hmmm.. Time for the Boomer to weigh in here. First, to quote your quote:

”45% of the SMBs on TikTok consider it critical to their existence. On average, using the marketing and shop functions increase a business' revenue by 88%. With over 7 million businesses now using TikTok and TikTok Shop, the report estimates the platform has contributed $24
billion to the U.S. economy.”

45% consider it critical to their business? That’s worrisome, as has already been said by others. Any business model built on one sales and marketing channel is bound to fail anyway, Especially in our world of instant gratification and fickle online users. 88% just from using TikTok? That sounds like one of those things that fits into the “lies, d*%n lies, and statistics.” Yes, maybe their sales increased a lot, but I have to wonder about such a claim.

Anyway, like everyone else has said we use social media as a tool for outreach, marketing and communication. Not just one tool but as many as we can. If one fails, or is outlawed, then so be it. We move on. Remember when Facebook was going to save the business world and give us all instant revenue boosts, consistently? Or when we said the same about Google search? Whatever the tools are at the time is what we will use.

One parting shot. I’m betting — but can’t prove — that most of those businesses who consider TikTok critical aren’t bricks-and-mortar businesses. I’d bet that most of them are influencers, or travel blogs, etc. Even they should diversify, whether or not TikTok is actually banned in the US.

I’m not a hater though I do handle social media with kids’ gloves these days. For all its potential for good it seems to mostly devolve into actual bad over time anymore. I’ll use it when it works for Piper’s but if it all went away I wouldn’t shed a tear, either. Such is life.

But, hey, what do I know? (And all the people said “ok, Boomer.” Ha)

Re: In the News: How would a TikTok ban affect your business?

Doran — Mon, 27 May 2024 20:41:06 GMT

Funny you describe the two this way. It is the same way I engage with IG vs TT. I follow a bunch of other business owners who are sharing their failure & success stories. It's a crash course in business ownership from the pandemic to current with real-time results. If it were banned I wouldn't lose money but I would lose access to that information.

Re: In the News: How would a TikTok ban affect your business?

DinaLRosenberg — Tue, 28 May 2024 16:36:31 GMT

It would be pretty brutal for us. To date we have 260k followers on TT and we sell between $40-60k per month on TikTok shop. TikTok shop has really helped us manage the slow down of in-store purchases and it drives repeat customers to our website.

I think it will be months (years) before TT actually shuts due to litigation and I do think that TT will work something out with the US government should it get close.. but it's super scary for sure.

I'm sure if the ban goes through, another platform will take it's place (I think something new- not FB or Insta).. In the meantime we're still putting our time and attention into TT and we keep going hard until we can't anymore.