When it comes to the Senate's upcoming vote on a bill that could potentially ban TikTok in the U.S. unless it separates from its Beijing-based parent company ByteDance, Delyanne Barros has a lot at stake.
The 41-year-old personal finance and money coach, who established a financial consulting company from scratch, expressed concerns that a ban on the popular social media app TikTok could lead to a possible 30% loss in her business overnight.
Barros, known as @delyannethemoneycoach on TikTok, admitted that without the Chinese-owned app, she might not have been able to run her own business today. The app, which is facing a potential ban if the legislation passed by the House on Wednesday becomes law, played a crucial role in the growth of her business.
"I launched my business in January 2020 and heavily relied on TikTok," Barros shared with CBS MoneyWatch. "That's where my content started gaining traction and it significantly boosted my business. It played a vital role in the initial stages of my business growth."
Barros utilizes TikTok as a way for 20%-30% of her clients to discover her and eventually purchase an investment course she offers. The rest of her clients come from other social media platforms where she is active, online searches, and referrals. Additionally, she earns income through sponsored posts from brands on various social media sites, including TikTok.
"A ban would result in me losing a major part of my business. I would definitely feel a hit," she expressed.
Barros is not the only one in this situation. A significant portion of TikTok's 170 million monthly active users in the U.S. rely on the platform to create additional income streams, with some even making it their primary source of revenue. Among them, seven million small businesses utilize TikTok to boost their growth, as highlighted in a recent report from Oxford Economics and TikTok.
Tori Dunlap, the founder of a financial and career platform called Her First $100K, credits TikTok as a crucial element in the expansion of her business. The platform played a vital role in securing a book deal and launching a successful podcast. Over the span of four years, her viral videos have helped her amass a following of 2.4 million on TikTok. Her popularity on the app has also resulted in profitable partnerships with brands and an influx of new clients for her coaching services.
TikTok's Impact on Businesses
According to Dunlap, TikTok plays a crucial role in the customer journey, serving as the top of the funnel for their business. It is the platform where people discover their products and services, highlighting its importance in their marketing strategy.
The Devastating Effect of a Ban
Sophie Beren, the founder and CEO of The Conversationalist, expressed concern over the potential ban of TikTok. She emphasized that for creators who heavily rely on the platform for income, a ban would be devastating. In a world where traditional paths to economic stability are no longer guaranteed, losing a significant source of income like TikTok could have serious repercussions.
Beren described the situation as "incredibly unfair," pointing out the challenges faced by young people in securing stable income streams.
Similarly, Tiffany Yu, the founder of Diversability, shared her worries about the impact of a TikTok ban on her business. Diversability generates revenue through memberships and corporate sponsorships, with TikTok playing a crucial role in expanding their reach and securing major brand partnerships. In fact, more than half of Diversability's revenue comes from deals acquired through TikTok, including partnerships with Hilton and Dove.
For Yu, the potential ban poses a significant threat to the sustainability of her business and the community it serves and employs. The platform's role in facilitating partnerships and expanding business opportunities cannot be understated.
For Yu, a ban could mean going back to her bootstrapping roots, when she made ends meet by renting part of her apartment and selling used furniture, in the early days of running Diversability.
"I would like to not have to go back there, but if that's what we had to, then we would do it," she said.
Safer to diversify, than rely on a single platform
Barros, the money coach, said that while a TikTok ban could hurt her business, it wouldn't destroy it. That's because she has never allowed her business to depend entirely on a single platform, whose fate she never had any control over.
"Like any business, you need to diversify, and I use Instagram and Threads and all the other platforms, too," she said.
But TikTok offers a unique advantage for people like herself, Barros said, because its algorithm is more effective at feeding audiences tailored content that they're likely to engage with, she believes.
Still, she's prepared for a potential ban on TikTok and any other social media platform for that matter.
"I use other platforms but I have also been building an email list that I own," she said. "I feel secure that my business will continue to grow and thrive. If TikTok were to be shut down I would inevitable feel the impact, but it's not something that would wipe out my business."
