For many small entrepreneurs and gig workers, social media platforms are a lifeline to building brand awareness and increasing customer reach in a cost-effective and creative way, but the hidden risks of relying on social media for business can be significant — like building a home on a shifting foundation or betting your business on the base of a teetering Jenga tower.

It ultimately comes down to control. If you’re relying heavily on these platforms, your livelihood depends on factors beyond your immediate scope of influence. According to CIO Insight, up to 81% of workers admit to using unapproved apps out of habit. That compromises overall digital security but mistakes in the use of social media can exacerbate it.

From payment processors to marketplaces and SaaS products, the risks of relying on social media for business become very real when the platform makes a change or removes a service. Smooth day-to-day operations disappear in an instant and you’re left with a crisis.

The primary areas of risk are:

• Algorithm Risk: Every platform has an algorithm they control –– what gets the spotlight and what is buried. Even small adjustments to the system can reduce traffic and cut your leads and sales without warning. You may not even realize what’s happening right away, but your foundation just took a major hit.
• Audience Capture: Unless you own the actual contact information your followers are not the same as owned contacts. If your account is hacked, locked or removed, all those followers disappear with it. Email capture helps reduce this risk.
• Data Ownership: Similar to audience contact information, platforms control data collection, storage, distribution/sharing and access so, once again, you aren’t the sole owner of those all-important customer data details. Providers have a responsibility to secure their platforms, but you still must practice digital hygiene. AFE Members have access to articles that address the problems and solutions of cybersecurity for small businesses.
• Margin Erosion: Even services that say they’re free have costs that can add up. Fees, boosting content to stay visible and ad spending slowly chip away at your margins and you may not be factoring that into your spending and bottom line cost of customer acquisition.
• Operational Fragility: Be cautious of centralizing all your digital operations and social media on a single platform. One hack, phishing scam or policy change can kill your sales or brand in an instant. If you’re locked into a single digital ecosystem, it can become difficult and very expensive to leave. Think of all the pieces of that Jenga tower crashing down and it’s your job to rebuild.

The solution isn’t to eliminate all use of helpful platforms. Practicing digital sovereignty can help reduce the risks of relying on social media for business. Here are some basic strategies you can use to diversify and take control of right now:

• Create your own user-friendly website and use it to gather contact information and generate leads. Your social media profiles can point users to this website as the public-facing side of your business. Add regular blog content to drive new customers to your page with SEO. 

• Experiment with content marketing on new platforms or use neglected accounts, such as LinkedIn for B2B and presenting your thoughts as an industry leader. Use SMS marketing for text updates and offers. 

• Build your own list for email marketing. Preserving an email list allows you to stay in touch with your audience in the event of a breach, hack or suspension. AFE members can utilize discounts with Constant Contact online marketing services. 

• Create a best practices framework for yourself and anyone you employ. Make sure fully off-board departing employees and their devices. Closely monitor social media accounts so anything that goes awry will be caught immediately. 

• Build direct relationships with face-to-face interaction and word-of-mouth referrals. Get involved in community events, host your own or join up with online groups outside of social media to connect with your audience. 

Social media can position you for discovery, but it should never be the only thing holding your business together. A stronger foundation comes from building assets you control: your website, SEO content, email marketing, text updates and real-world relationships that don’t disappear when an algorithm change or a platform shifts its rules or services. That is how small entrepreneurs move from platform dependence to digital sovereignty. As you continue building that foundation, AFE has the information, tools and resources to support your day-to-day work and long-term goals.