Would your business survive if Pinterest disappeared tomorrow?
I know, the thought of Pinterest disappearing seems crazy….ridiculous even. I mean, everyONE and their mother is on Pinterest….right?! Heck…Pinterest is definitely ON TOP since they’re going public…right?!
Here’s the deal about Pinterest going public….there are BIG changes on the horizon. Did you know that up to this point, Pinterest hasn’t even been profitable?!
The company, although it is still not profitable, says it earned more than $750 million in revenue last year, and it’s cut its losses from nearly $200 million in 2016 down to just under $75 million annually. Pinterest says it was
in factprofitable in the fourth quarter of 2018, but not profitable enough to get out of the red for the full calendar year.”
(The Verge, 03/22/19)
I mean HOW can you run a large-scale company like Pinterest and not be profitable?
Private investors is how.
See, these private investors believe in the marketing power of Pinterest and have been investing in the company with the hopes of it paying off big time…presumably when Pinterest goes public. Because, as people buy shares, the investors will start to see that return in investment. But, here’s where the switch happens…..
Pinterest, which launched in 2010, primarily makes money by attracting advertisers to its platform, where users create boards in which they self-identify their interests and through which advertisers can try and sell them products.” (The Verge)
Nothing ground-shaking new here.
But, think about this for a minute….Pinterest “primarily makes money by attracting advertisers to it’s platform”. Well, when Pinterest goes public it’s going to change the entire dynamic of the platform (oh, and they didn’t classify themselves as a social platform…food for thought)…once public, Pinterest will be held to a new standard of profitability with incoming share-holders. Share-holders are going to demand that Pinterest becomes profitable….and if they “primarily make money by attracting advertisers to its platform”…then that means more sponsored pins and ads.
In the same way we saw organic reach decline to just 1-6% on Facebook, I foresee the same organic reach declining on Pinterest. Can your blogging business survive if you no longer receive traffic from Pinterest?
So what are you going to do?
- You could pretend it’s not happening and keep riding on the Pinterest wave until it crashes.
- You can focus on SEO (Search Engine Optimization).
- You can try to build traffic on other social platforms.
- Or, you can stop chasing traffic and start chasing profits….like I did.
Check out this free video webinar: Small Blog, Big Profits and learn my secrets for success without chasing traffic.
What do you think? Do you think we’re going to see big changes once Pinterest goes public?