{"id":16936,"date":"2022-02-26T10:24:07","date_gmt":"2022-02-26T10:24:07","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/02\/26\/startup-founder-says-he-lost-his-company-and-100-million-by-relying-on-facebook-sends-chills-down-my-spine-to-watch-others-build-businesses-on-instagram-and-tiktok\/"},"modified":"2022-02-26T10:24:07","modified_gmt":"2022-02-26T10:24:07","slug":"startup-founder-says-he-lost-his-company-and-100-million-by-relying-on-facebook-sends-chills-down-my-spine-to-watch-others-build-businesses-on-instagram-and-tiktok","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/02\/26\/startup-founder-says-he-lost-his-company-and-100-million-by-relying-on-facebook-sends-chills-down-my-spine-to-watch-others-build-businesses-on-instagram-and-tiktok\/","title":{"rendered":"Startup founder says he lost his company and $100 million by relying on Facebook: &#8216;Sends chills down my spine&#8217; to watch others build businesses on Instagram and TikTok"},"content":{"rendered":"<p> <a href=\"https:\/\/go.fiverr.com\/visit\/?bta=1052423&nci=17043\" Target=\"_Top\"><img loading=\"lazy\" decoding=\"async\" border=\"0\" src=\"https:\/\/mailinvest.blog\/wp-content\/themes\/breek\/assets\/images\/transparent.gif\" data-lazy=\"true\" data-src=\"https:\/\/fiverr.ck-cdn.com\/tn\/serve\/?cid=40081059\"  width=\"601\" height=\"201\"><\/a>\n<br \/><img decoding=\"async\" src=\"https:\/\/mailinvest.blog\/wp-content\/themes\/breek\/assets\/images\/transparent.gif\" data-lazy=\"true\" data-src=\"https:\/\/www.businessinsider.in\/photo\/89832771\/startup-founder-says-he-lost-his-company-and-100-million-by-relying-on-facebook-sends-chills-down-my-spine-to-watch-others-build-businesses-on-instagram-and-tiktok.jpg?imgsize=305752\" \/><\/p>\n<div>\n<ul class=\"summary-list\">\n<li>LittleThings founder Joe Speiser said this week that he lost $100 million thanks to Facebook.<\/li>\n<li>The network in 2018 rolled out an algorithm change that upended the digital news world at large.<\/li>\n<\/ul>\n<p>A founder <a target=\"_blank\" href=\"https:\/\/www.businessinsider.com\/littlethings-online-publisher-shuts-down-and-blames-facebook-algorithm-2018-2\" rel=\"nofollow noopener\">who says his company went under thanks to a Facebook algorithm tweak in 2018<\/a> shared more details about the incident in a lengthy Twitter thread this week.<\/p>\n<p data-pos=\"4\">Joe Spieser <a target=\"_blank\" href=\"https:\/\/www.businessinsider.com\/littlethings-profile-2015-9\" rel=\"nofollow noopener\">launched LittleThings.com in 2014<\/a> as a women-focused digital media site devoted to uplifting content, like animal videos, recipes, and other feel-good stories.<\/p>\n<p>Things were booming before an algorithm change, with 20 million social media followers mostly built from Facebook&#8217;s massive userbase, he tweeted. Speiser said Facebook even used LittleThings as an example of how to build a successful media company at one of its annual conferences.<\/p>\n<p>But traffic to the company&#8217;s pages was throttled when Facebook changed its algorithm to promote posts that it thought people would engage with the most, like posts from friends and family, in a move it hoped would keep users on the platform longer. However, it <a target=\"_blank\" href=\"https:\/\/www.businessinsider.com\/facebook-employees-worrried-about-2018-algorithm-change-misinformation-trump-politics-2021-9\" rel=\"nofollow noopener\">also began to promote<\/a> violent, false, and divisive content.<\/p>\n<p data-p-pos=\"12_5\">Speiser tweeted that CEO Mark Zuckerberg &#8220;didn&#8217;t like the fluffy content we were producing and he wanted to be taken more seriously. &#8220;<\/p>\n<p>Speiser said his then-flourishing site lost 90% of organic traffic on Facebook. The readership loss forced Speiser to let go of more than 100 staff members, and the former CEO said he lost $100 million.<\/p>\n<p data-pos=\"9\">&#8220;It was a death sentence,&#8221; he said.<\/p>\n<p>The now-angel investor warned other startup founders that although building businesses on apps like Amazon, TikTok, Google, Spotify, and Instagram can get you millions of eyeballs and fast growth, &#8220;can you ever truly sleep well at night knowing at any time it can all be taken away with just a simple algorithm change?&#8221;<\/p>\n<blockquote class=\"twitter-tweet blockquote\" data-lang=\"en\" data-cards=\"\" data-conversation=\"\"><p>\u2014Joe Speiser \u26a1\ufe0f  (@jspeiser) <a target=\"_blank\" href=\"https:\/\/twitter.com\/mims\/statuses\/1496174687830765568?ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">February 22, 2022<\/a><\/p><\/blockquote>\n<p>LittleThings eventually shut down in 2018. One source close to the company <a target=\"_blank\" href=\"https:\/\/www.businessinsider.com\/littlethings-online-publisher-shuts-down-and-blames-facebook-algorithm-2018-2\" rel=\"nofollow noopener\">told Insider<\/a> at the time that &#8220;Facebook is the destroyer of worlds.&#8221; Speiser declined a more in-depth interview for this story.<\/p>\n<p>This algorithm change has been at the center of a debate over Facebook&#8217;s influence on news production. Publishers were forced to reorient their business models to reach the platform&#8217;s readers, who showed that they were more apt to click on and engage with sensationalistic and divisive content over other forms of stories. So-called clickbait content became more common as a result.<\/p>\n<p data-pos=\"14\">This change was also mentioned in the <a target=\"_blank\" href=\"https:\/\/www.businessinsider.com\/facebook-papers-mark-zuckerberg-frances-haugen-leaked-docs-2021-10\" rel=\"nofollow noopener\">so-called Facebook Papers leak last year<\/a>. A trove of internal documents showed that <a target=\"_blank\" href=\"https:\/\/www.businessinsider.com\/facebook-employees-worrried-about-2018-algorithm-change-misinformation-trump-politics-2021-9\" rel=\"nofollow noopener\">even Facebook&#8217;s own employees were concerned that the algorithm would have adverse effects<\/a>, like promoting outrageous content.<\/p>\n<p>Facebook&#8217;s parent company, now known as Meta, has pushed back against the reporting from the documents, saying they do not paint a complete picture of the company&#8217;s various initiatives to combat harmful activities on its platforms. <\/p>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><iframe data-lazy=\"true\" data-src=\"https:\/\/www.fiverr.com\/gig_widgets?id=U2FsdGVkX18x7XQvttUTrv1oEqmGNGTgvvCUiUoJ\/AP4z\/UyMz8lXGOLpu15jIMxBbTR0gmD5uBoFvhC4KWeALQRp3h\/X\/AwcVD0K8Wj9H\/ZzYKzcCNHosB9oS4SCJJFWiN85P9ICAc4OgCoE\/wHKIY7CDkf2\/DQ1vqGvk4smVe5cRDEmrLPCWi4FC8p40VUhSmWQ5udCm0zoJtorgWv3vbDQw0kKYkwn39ozAnQXDe+YvWMxkLFWA+O3TFwkJvdkIK+\/AUSnRssPKt5WHY0FhNOxnSPcLslEL4G4\/RfP95ve99U+kRnDy3X+KtzdQLY+u935ghON\/o3UE4IMv9oN6JX9RnxzL\/LRcOgnHigxStSGPKsZYtnz8RWNVT\/rOLAibqiWJadC5MYHRbekF3eg6FOGrQGkXYbsn0+a5aovnlLCbLwIqY9fcS17UX8J235iQ6cdmHNbrPeS84CMm34RA==&affiliate_id=1052423&strip_google_tagmanager=true\" loading=\"lazy\" data-with-title=\"true\" class=\"fiverr_nga_frame\" frameborder=\"0\" height=\"350\" width=\"100%\" referrerpolicy=\"no-referrer-when-downgrade\" data-mode=\"random_gigs\" onload=\" var frame = this; var script = document.createElement('script'); script.addEventListener('load', function() { window.FW_SDK.register(frame); }); script.setAttribute('src', 'https:\/\/www.fiverr.com\/gig_widgets\/sdk'); document.body.appendChild(script); \" ><\/iframe>\n<br \/><a href=\"https:\/\/www.businessinsider.in\/tech\/news\/startup-founder-says-he-lost-his-company-and-100-million-by-relying-on-facebook-sends-chills-down-my-spine-to-watch-others-build-businesses-on-instagram-and-tiktok\/articleshow\/89832771.cms\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>LittleThings founder Joe Speiser said this week that he lost $100 million thanks to Facebook. The network in 2018 rolled out an algorithm change that&#8230;<\/p>\n","protected":false},"author":1,"featured_media":16937,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-16936","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech-universe"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Startup founder says he lost his company and $100 million by relying on Facebook: &#039;Sends chills down my spine&#039; to watch others build businesses on Instagram and TikTok - mailinvest.blog<\/title>\n<meta name=\"description\" content=\"Technology is forever changing, and there are always new pieces of technology to replace obsolete ones. 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