Platforms such as Shopify, which houses more than 5.6 million retailers worldwide, contribute to the booming digital economy. While these figures are astounding, they mask a disturbing truth: many companies rely substantially on paid advertisements on platforms like Google and Facebook.
A heavy price is paid for this dependence. Platforms take approximately 30 per cent out of every rupee/dollar that firms make, which is called a charge but can be called a “platform tax” because it cuts into earnings and makes enterprises dependent on these platforms. But this is the expansion cost, and many companies are willing to pay it.
Will it last, though? The answer is no. I’ll tell you why—and how companies can get out of it.
There are a lot of problems with depending on social media and search engines like Google and Facebook:
Frequent algorithm shifts can suddenly reduce ad visibility, leaving businesses scrambling to recover.
Intense competition for ad space leads to bidding wars, which drive up the cost-per-click (CPC).
Many companies lose money because some users use ad-blocking software or click fraudulently.
Businesses don’t own their market share—they rent it. This is the main problem with depending on sponsored marketing. Suddenly, visibility disappears the moment you stop spending. As a result, you’ll have to keep spending more on marketing to acquiring customers.
Businesses must stop focusing on purchasing attention and build loyalty to break free of this dependency. To succeed, you need to cultivate a following of people who will buy and extol about your products.
Members of your community will remember your brand and come looking for it, reducing the need for expensive advertising.
Loyal advocates multiply their reach by bringing in new clients through word-of-mouth.
Grow steadily with less advertising spending when your community is strong.
You may reach your audience directly through email lists, social media groups, and forums without paying intermediaries.
The cornerstone of sustainable growth is long-term, exponential growth, not short-term, incremental gains, and communities provide that.
There are three essential components for building a community that supports your business:
Groups of people get together to accomplish shared objectives. Find a purpose that speaks to your target demographic.
• People concerned about the environment are drawn to Patagonia because of their dedication to sustainability.
• Take action by explaining the “why” behind your company in a way that motivates others to become involved.
Public confidence in advertisements is lower than that in peer recommendations. Use social proof to establish trust.
• Steps: Highlight comments from satisfied customers and examples of past work. Work together with advocates or advocates who share your beliefs. To give a platform to genuine voices and promote user-generated content.
No community can succeed without providing anything of real value. Provide products and services that improve people’s lives or address real issues.
• Apple’s network of products and services encourages customer loyalty by meeting user demands effortlessly.
• Take action: Make sure your products are relevant and meaningful by constantly refining them based on community input.
The primary goal of conventional branding is to externalise a company’s identity. Despite its importance, This technique has limitations when it doesn’t engage the community. As an alternative, strong brands are created from the ground up:
1. Build a Community: Start by connecting with your audience personally.
2. Faith Motivators: Let your community spread the word and fuel the belief in your brand.
3. Workable Opportunities: Provide clear opportunities for engagement, from purchasing products to sharing experiences.
When you choose this approach, your brand becomes a movement with devoted supporters.
Gymshark started as a small eCommerce fitness apparel brand and grew into a global phenomenon by prioritising community over ads.
• Shared Philosophy: Gymshark aimed to unite fitness enthusiasts by embracing and supporting their growth path.
• Faith Motivators: The company partnered with fitness influencers to establish credibility and a real connection with its audience.
• Workable Solution: High-quality, fashionable clothing that spoke to their demographic was an effective solution.
Indian skincare line Juicy Chemistry stands out for its commitment to natural, cruelty-free ingredients.
• Shared Philosophy: The company’s community was founded on conscious ingredients and sustainable living.
• Faith Motivators: Partnerships with influencers and user-generated content bolstered customers’ confidence.
• Workable Solutions: Juicy Chemistry rose to prominence in a competitive industry by providing solutions to problems like skin care and hair loss.
Chumbak, a lifestyle and design brand, created a loyal community through its unique, quirky products inspired by Indian culture.
• Shared Philosophy: Chumbak appeals to customers who cherish self-expression because it embraces creativity and uniqueness, a unifying belief.
• Faith Motivators: The brand actively participated in community activities and social media initiatives.
• Workable Solutions: Chumbak’s products, ranging from home decor to accessories, offer an aesthetic that resonates with its target audience.
Here are actionable steps to start building your community today:
1. Engage on Social Media:
Use platforms like Instagram, or LinkedIn to create spaces where your audience can connect with you and each other.
2. Collect Feedback:
Regularly interact with your audience to understand their needs and refine your offerings.
3. Foster Authentic Connections:
Share behind-the-scenes content, host events, or provide exclusive access to deepen relationships.
4. Invest in Owned Channels:
Build email lists, blogs, or forums to maintain direct communication with your community.
As advertising costs continue to rise and algorithms grow more unpredictable, the importance of community-driven businesses will only increase. Creating a loyal and engaged audience can reduce your dependency on paid ads, build sustainable growth, and future-proof your business.
Stop renting your influence from tech giants. Start owning it by building a community that champions your brand and ensures your relevance for years.
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