Worried about their income, small company owners press back on possible TikTok restriction

0
242
How potential TikTok ban could benefit other social media giants like Meta and Twitter

Revealed: The Secrets our Clients Used to Earn $3 Billion

When Aparna Singh very first become aware of a prospective TikTok restriction, she “immediately went into panic mode.”

“With the majority of my sales coming through TikTok, I definitely was thinking, ‘Is this going to be the end of my business?'”

Singh is the owner of a small company called Indian Goddess Boutique, which offers Indian- motivated precious jewelry and devices. The social networks app has actually been an “integral part” of her service, stated the 33- year-old.

“I get 90% of my sales through TikTok. Everyday I try to post at least one video about my business. Days I do not post, I see a decline in website traffic and sales.”

That is the exact same concern on the minds of some small company owners on TikTok, who have actually discovered success and constructed substantial audiences without needing to spend for marketing.

Their issues followed TikTok CEO Shou Zi Chew was grilled by legislators on the app’s addicting functions and whether information from U.S. users might wind up in the hands of the Chinese federal government through its China- based owner, ByteDance.

Politicians have actually likewise threatened an across the country TikTok restriction unless ByteDance offers its stake in the app, a relocation China stated it “strongly” opposed. The app is currently prohibited on government-owned gadgets in nations like the U.S., Australia and the U.K.

Concerned about a prospective restriction of TikTok, small company owners informed CNBC Make It why they believe the short-video app must remain.

How TikTok compares to other platforms

Like numerous other material developers, Singh began a TikTok account throughout the Covid-19 lockdown in 2020– and started marketing her service on it.

“I previously was focusing on Instagram to grow my business. Unfortunately the Instagram algorithm has changed so much over the years, I was barely getting any engagement,” she discussed.

On Instagram, she was “barely making any sales”– possibly 5 to 10 orders a month, she stated.

“Hashtags weren’t helping. It just wasn’t helping me reach the broader audience I needed.”

But whatever altered for Singh when she began utilizing TikTok– one video of her using a nose ring she offered went viral and sales “skyrocketed overnight.”

In 2020– the year she began utilizing the app– she made $20,000 in sales. One year later on, Singh stated she made $350,000, while “spending $0 in advertising.”

How TikTok took the world by storm

“That video showed me what product I should be focusing more on and what my customers really like,” she included.

That’s the appeal of TikTok, according to small company owners that CNBC Make It spoke with– it has actually assisted them discover their consumer and neighborhood “faster than any other platform.”

“I love how the TikTok algorithm boosts your videos to more people even if you have a small following, as long as the content is relatable to who you are trying to reach,” stated Teena Ho, who offers sticker labels with initial styles by means of @kawaiiflavor.

“When I created my TikTok page, my very first video reached thousands of views whereas on other social media apps, it would only be under 200 views.”

Renee Powers, who runs Feminist Book Club, an online neighborhood and book membership business, concurred. She stated TikTok has actually been “brilliant” for determining a specific niche audience and a structure for development.

How does a little brand name like ours reach them without investing countless dollars in standard media marketing? That’s what TikTok assists us do.

Renee Powers

Entrepreneur, Feminist Book Club

“For small businesses, it is the overwhelming leader in discovering the perfect audience for your brand … how does a small brand like ours reach them without investing thousands of dollars in traditional media advertising? That’s what TikTok helps us do.”

She stated each time a TikTok video gains over 50,000 views, her service sees a “30% to 50% influx in traffic” on the business’s site and fans on other social networks platforms.

“It got to the point last summer that we had to upgrade our website host because our traffic was consistently much higher.”

‘Scapegoat’ for personal privacy issues?

TikTok has actually raised worries over personal privacy and security issues– consisting of claims that U.S. user information might fall under the hands of the Chinese federal government.

In April, TikTok was fined $16 million in the U.K. for misusing kids’s’ information, after it permitted 1.4 million kids under the age of 13 to utilize the app in2020

Despite the security issues, small company owners have actually revealed aggravation over the possibilities of a total restriction. Those that CNBC Make It spoke with stated a restriction is not the “appropriate measure” to secure the personal privacy of users.

“As a former National Science Foundation fellow in Electronic Security and Privacy, the privacy concerns are not lost on me …  That’s not to say I don’t have concerns about TikTok, but I do think the benefits outweigh the harm,” statedPowers

“A ban on TikTok is not the answer to this issue. Rather, TikTok has become a scapegoat for data privacy concerns. Bytedance is not the first, nor will it be the last, company that misuses our personal data.”

She included that if the federal government “throws the book at TikTok,” it requires to do the exact same for all social networks platforms.

Back in 2018, Facebook CEO Mark Zuckerberg was questioned over the social media network’s function in the 2016 governmental elections and how it deals with information– though no restriction was proposed.

“What truly needs to happen is not a ban, but a nationwide user data protection policy that is platform agnostic and enforced by a dedicated independent organization,” Powers stated.

Bytedance is not the very first, nor will it be the last, business that misuses our individual information.

Renee Powers

Entrepreneur, Feminist Book Club

Singh included: “If I was this worried about this [privacy] problem, I would not have any social networks apps or [use] innovation.”

TikTok is “helping millions of Americans be able to provide for their families in such a hard time in our economy. Why take that away?”

Not putting all eggs in one basket

Without TikTok, small company owners state they will be at threat of losing development momentum which their business’s earnings will be “taking a hit.”

“We have a team of content creators that contribute TikTok videos, podcast segments, and blog posts,” stated Powers.

“Obviously, without TikTok, we would have to let go of our TikTok creators. Without the organic brand awareness that TikTok brings, we would have to sink money into more traditional marketing strategies.”

Singh included: “I currently have one employee, my sister, so this ban will take a toll on my family. If the TikTok ban takes place and I will have to pivot my marketing in another direction.”

For now, Ho and Powers are aiming to Google- owned YouTube shorts– a brief video competitor to TikTok– as an alternative.

“Start making contingency plans now. Grow your email list. Let your followers know where they can find you if the ban is approved,” Powers encouraged other small company owners on TikTok.

As for Ho, “building a strong community” online will be even more important.

“If TikTok were to be gone one day, your community will follow you to the next platform,” statedHo “It’s important not to put all your eggs in one basket.”

TikTok ban would be bad policy and precedent, says former NSA general counsel

The company owner likewise worried the significance of not entirely depending on TikTok for sales however all other platforms too. That consists of enhancing e-mail marketing, advertisements on Google, Instagram and Facebook, Singh stated.

“TikTok is not the only place to support small businesses. We’re on Instagram, Twitter, Facebook, YouTube, Yelp, Google, Etsy,” Powers included.

“TikTok may make it easy to discover new-to-you small businesses, but if you’re passionate about shopping small, please put in the extra effort to find us.”

Don’t miss out on: Here are the leading abilities you will require for an ‘A.I.-powered future,’ according to brand-new Microsoft information
Like this story? Subscribe to CNBC Make It on YouTube!