More and more people in America are trying to be their own bosses. As of 2016, the Total Entrepreneurial Activity Report, conducted by Global Entrepreneurship Monitor, recorded that over 25 million Americans are “starting or running a new business.”[1] This report also shows that people are entering entrepreneurships because they are confident in their abilities and believe that there are better opportunities in being their own bosses. [2] As we go through the Information Age, it is only logical that entrepreneurs take advantage of available social media mediums to reach out to consumers and market their services or products.
For years, the social media industry has seen a lot of change and a substantial rise in usage. One of the first major social media platforms was MySpace. However, MySpace was quickly overtaken by Facebook, YouTube, and Instagram.[3] According to a Pew Research Center survey, as of 2018, a majority of U.S. adults are using some form of social media.[4] Social media platforms allow users to stay connected with friends they know in real life or meet new friends in the virtual world. There are also sites created to make professional connections, such as LinkedIn and Bumble Bizz. Now, social media platforms help businesses market their products and services while helping entrepreneurs communicate to the world.[5] Social media makes the world aware of their products, services, and more importantly, their visions.
Pew Research Center data revealed that most users visit social media platforms at least once a day, and 51% of users visit more than one social media platform multiple times a day.[6] These visits give more exposure to an entrepreneur’s products and services, thereby creating more business opportunities for them. According to Pew, social media users regularly visit several social media platforms.[7] For example, 91% of Instagram users also use Facebook, and 87% Facebook users also use YouTube.[8] Out of those users who regularly engage in social media, over 90% of them use YouTube.[9] By using only 2 or 3 social media platforms, an entrepreneur can widely disseminate business promotions and create a diverse customer base.
Social media easily allows consumers to accesses a variety of markets and helps entrepreneurs to build a genuine relationship with their clientele. A simple “like,” comment, message or sharing of photos and videos is an instant and efficient method of building a connection with a potential client. Entrepreneurs can also use social media to immediately receive feedback from their clients. Positive feedback can increase a customer base and any negative feedback show entrepreneurs where they can improve.[10] Shoug Al Nafisi, a self-employed nutritionist, says that social media even allows direct communication and testing of her ideas.[11] There has been as increase of 115% in organic marketing reach since 2012; 68% of Instagram users habitually interact with brands, products, and services.[12]
Entrepreneurs using social media also create a marketing network when their own loyal customers share their social media posts with other users. Another major upside to using social media is influencer marketing[13]. Influence marketing is when a popular influencer or celebrity uses their personal social media accounts to promote a product or service. For example, an entrepreneur can convince an influential social media user, (i.e., someone with one million followers on Instagram) to promote the entrepreneur’s brand. Followers will likely try out the entrepreneur’s product due to their loyalty to the popular influencer.
Because social media is such a great economical alternative to advertising on TV, radio, or magazines, social media is used by many entrepreneurs including: Dwayne Johnson, Gary Vayner, Mike Rashid, and Dan Bilzerian. Big corporations such as Apple, Samsung, Walmart, and Target have also capitalized on the many benefits of social media.[14] Law firms are slowly following suit.[15]
As more and more employees leave traditional jobs to become their own bosses, more and more consumers use social media in search of services and products. Incoming entrepreneurs have access to innumerable social media resources and social media usage is rising at an unprecedented rate. It would be wise for entrepreneurs to take advantage of this trend.
[1] Donna J. Kelley et al., Babson College, Global Entrepreneurship Monitor United States Report 2016 (2017), available at http://www.babson.edu/Academics/centers/blank-center/global-research/gem/Documents/GEM%20USA%202016.pdf.
[2] Id.
[3] Amy Lee, MySpace Collapse: How The Social Network Fell Apart, The Huffington Post, https://www.huffingtonpost.com/2011/06/30/how-myspace-fell-apart_n_887853.html (last visited Nov 1, 2018).
[4] Aaron Smith & Monica Anderson, Pew Research Center: Internet & Technology, Social Media Use 2018: A Majority Of Americans Use Facebook And YouTube, But Young Adults Are Especially Heavy Users Of Snapchat And Instagram (2018), http://www.pewinternet.org/2018/03/01/social-media-use-in-2018 (last visited Oct 15, 2018). (73% of all U.S. adults – maybe as high as 94% – between the ages of 18 to 24 use YouTube; 68% of all U.S. adults and 80% of 18 to 24-year-olds use Facebook; 35% of all U.S. adults and 71% of 18 to 24-year-olds use Instagram).
[5] Entrepreneur (@entrepreneur), Instagram, https://www.instagram.com/entrepreneur/ (last visited Oct. 28, 2018).
[6] Smith, supra note 4.
[7] Id.
[8] Id.
[9] Id.
[10] Entrepreneur, supra note 5.
[11] Shoug Al Nafisi, How Social Media Made Me Better… at Almost Anything Entrepreneur (May 3, 2015), https://www.entrepreneur.com/article/245670.
[12] Why Brands Should Embrace Instagram Instead of Facebook, Ecommerce CEO, https://www.ecommerceceo.com/why-brands-should-embrace-instagram-instead-of-facebook (last visited Oct 15, 2018).
[13] Gerardo A. Dada, What Is Influencer Marketing and How Can Marketers Use It Effectively?, Forbes, https://www.forbes.com/sites/forbescommunicationscouncil/2017/11/14/what-is-influencer-marketing-and-how-can-marketers-use-it-effectively/#1f302a3f23d1 (last visited Nov 1, 2018).
[14] Entrepreneur, supra note 5.
[15] Id.
