Minor changes in how social media giants like Meta’s Facebook and Instagram operate can dent the profits of an emerging company. A startup founder’s story is testimony to the same, for he claims that his startup lost $100 million by relying on Facebook.
In a Twitter thread, Joe Spieser, the founder of LittleThings.com explained how an algorithm tweak by Facebook led to a $100 million loss and eventual shutdown. The website is a women-centric site devoted to uplifting content like recipes, positive stories, and animal videos.
How the website died because of Facebook
With Facebook’s help, the website built a user base of 20 million social media followers. When Facebook tweaked its algorithms in 2018 to deliver customised content to people’s feeds, the company lost 90% organic traffic on Facebook. “[Zuckerberg] didn’t like the fluffy content we were producing and he wanted to be taken more seriously.”