Filipinos have embraced Facebook as a critical business tool. Its vast reach and convenience make it ideal for that. With 86.75 million active users in the Philippines, the platform offers a chance to reach an extensive local and global market. Over 75% of users are connected to at least one company.

Filipino businesses are not just surviving, they are thriving on Facebook. 63% report making sales via digital channels, and 3 in 5 customers choose to engage with businesses on Facebook Messenger. The numbers are not just promising, they are a testament to the potential for growth: 97% of firms believe that messaging is a critical factor in their success. With tools like Reel ads and Facebook Marketplace, the ecosystem seems tailor-made for exponential growth.

But behind these stats lies a bigger question: can a business grow by relying only on Facebook?

Are Filipino entrepreneurs limiting their potential by trusting their businesses to one platform?

It’s time to consider the risks of building a business entirely on borrowed ground. This is a wake-up call to reassess Facebook’s role in creating a business that is resilient and future-proof.

Why Relying Solely on a Facebook Page Can Put Your Filipino Business at a Disadvantage

Establishing an online presence is crucial for business success. Facebook is a good starting point for many Filipino business owners, especially those who need to be tech-savvy. Its user-friendly interface and vast user base make it an ideal platform to showcase products online and services.

However, solely depending on a Facebook page for your business growth can lead to several disadvantages.

Here are seven compelling reasons why Filipino business owners should reconsider this approach:

Lack of Ownership and Control

Relying only on platforms like Facebook to run your own ecommerce business is risky. You build your livelihood on rented ground. While Facebook offers convenience and access to millions of potential customers, it comes with a critical downside: you need to own it. This lack of control leaves your business vulnerable to changes that can instantly disrupt operations. Here’s why not owning your online store means you’re just one step away from losing everything:

The Algorithm Can Change Overnight

It’s crucial to understand that Facebook’s algorithms are in a constant state of flux, prioritizing different content types like videos or posts from friends and family. This means your business posts could suddenly reach fewer people without any prior warning.

Critical Facebook Updates and Their Effects on Filipino Businesses

Here is a list of algorithm updates on Facebook that impacted users and business owners on their platform.

2018: Meaningful Interactions Update

2019: “Why am I seeing this post?” Update

2021: Machine Learning and User Control

2022: AI Integration and “Show More/Show Less” Feature

Ongoing Updates Impacting Filipino Entrepreneurs

You’re at the Mercy of Platform Policies

Facebook sets the rules and can enforce them however it sees fit. A single policy update or violation can cause problems. It doesn’t matter if it was intentional or accidental. It can restrict ad reach, lead to content takedowns, or even ban accounts. With an independent platform, you could gain the ability to communicate with customers or make online sales elsewhere.

You Have No Exit Strategy

Imagine Facebook decides to shut down tomorrow, or you face a permanent ban for reasons beyond your control. Without your online store or ecommerce platform there, your business has no safety net. Years of effort, loyal customers, and hard-earned sales can vanish instantly.

Are You Overestimating Your Facebook Reach? Here’s What You Need to Know

Facebook is often seen as the ultimate platform for growing a business. With millions of users scrolling daily, it feels like the perfect place to connect with customers and drive sales. But here’s the truth: most business owners overestimate their reach on Facebook. This hurts their growth. Let’s break down the common myths that could be holding you back.

Your Follower Count Isn’t What You Think

Thousands of followers may seem impressive. But, it means your posts reach only some of them. Facebook’s algorithm decides who sees your content; on average, only 5.2% of your followers will catch your latest post. That’s just five people out of every hundred.

Engagement Is Shockingly Low

Even when your content reaches people, getting them to interact is different. The average engagement rate for posts is a tiny 0.06%. That means out of 10,000 followers, only six might like, comment, or share your post.

Your Biggest Fans Aren’t the Whole Picture

If you interact with a few loyal followers, it’s easy to believe your audience is more significant than it is. This “echo chamber” effect can mislead you. It may make you think your content is thriving, but most of your audience needs to be more engaging or even see your posts.

Paid Ads Aren’t the Same as Organic Reach

If you’ve run successful Facebook ads, you might assume your organic posts will perform similarly. Unfortunately, they won’t. Ads get boosted by your budget, while organic posts fight to survive in a crowded feed.

Inactive Followers Inflate Your Numbers

Not all followers are created equal. Some might be inactive accounts, while others could be fake profiles. These followers add to your numbers but nothing to your engagement or sales.

Global Followers Don’t Equal Local Sales

For local businesses, global followers sometimes translate to paying customers. If you’re running online selling a bakery in Quezon City, having followers from abroad might boost your ego—but it won’t help your bottom line.

Here’s the Hard Truth

Facebook is a powerful tool but only part of the solution. Relying entirely on it can lead to false confidence in your reach and engagement. For real growth, take control of your audience, focus on quality over quantity, and create your own website with a strategy that doesn’t rely on one platform.

It’s time to stop chasing numbers and start building a genuine business.

Data Ownership and Customer Insights

A significant drawback and disadvantages of using Facebook for business is limited access to customer data. Facebook offers basic analytics but needs the insights of dedicated sites or CRM systems. This limits your ability to analyze the market and personalize marketing, and it also hurts your efforts to build customer relationships.

Without detailed customer data, your business relies on Facebook’s data policies. These may limit your marketing and customer engagement efforts. This dependency can impede your ability to fully understand customer behavior, tailor your offerings, and drive sales effectively.

High Competition and Market Saturation

Facebook’s popularity means countless businesses vying for the same audience’s attention. In the Philippines, where entrepreneurial spirit is strong, the competition on Facebook can be fierce. To stand out in the noise, one must be creative, strategic, and persistent in marketing. That can overwhelm non-technical business owners.

The saturation makes it difficult to establish a unique brand identity solely online shopping or through Facebook. With a robust and consistent brand across platforms, your business may be able to stand out. This can hurt brand recognition and customer loyalty.

If you’re on Facebook and Not Running Ads, Your Business Is Losing Ground.

Facebook is a game-changer for businesses. It connects them with millions of potential customers. But in 2024, the harsh reality is this: if you’re not investing in Facebook ads, your online business really needs to catch up. Here’s why relying on organic reach alone is no longer a viable strategy:

1. Organic Reach Is Nearly Non-Existent

Back in 2012, businesses could rely on organic reach, with posts reaching 16% of their followers. Fast-forward to today, and that number has plummeted to just 5.2%. This means that for a page with 10,000 followers, only about 520 people will see a post—unless you pay to promote it.

2. Engagement Rates Are Shockingly Low

Even if your content does manage to reach your target audience, getting them to interact is another uphill battle. As of July 2023, the average engagement rate for organic posts has dropped to as low as 1.52%. For every 1,000 followers, fewer than 16 people may like, comment, or share your post. Your posts are virtually invisible in competing content without paid promotion.

3. ROI from Organic Content Is Declining

A recent study found that 45% of marketers reported decreased organic reach. In comparison, 35% saw a drop in ROI even from Facebook ads. If businesses investing in ads need help to see returns, relying solely on unpaid content is a losing battle.

4. Facebook’s Algorithm Is Stacked Against You

Facebook’s algorithm prioritizes content from friends, family, and paid advertisers. Organic business posts are pushed further down the Feed, making visibility only possible with ad spend. Your business is only part of the conversation if you’re paying.

5. The Cost of Staying Visible

Running ads isn’t cheap—the average cost-per-action (CPA) on Facebook is $18.68. This might seem daunting for small businesses with tight budgets, but the alternative is even worse: staying invisible. The platform’s pay-to-play model has left no room for businesses unwilling to invest.

6. Time Without Results

Filipinos spend an average of 57 minutes daily on Facebook, logging in about eight times daily. While this sounds promising, the low organic reach means that even your best content may need to be noticed. The time you invest in crafting posts and managing your Page doesn’t yield returns unless you amplify your efforts with ads.

7. The Shift to Paid Advertising Is Inevitable

Over 3 million businesses regularly advertise on Facebook, and 70% report their best ROI. These businesses aren’t just paying for ads—they’re securing their place in the online marketplaces. Suppose you’re still relying solely on organic strategies. In that case, you’re competing against brands with deep pockets and a plan built for visibility.

The Bottom Line

Facebook is no longer a platform where businesses can thrive without a paid strategy. The algorithm, declining organic reach, and low engagement rates make it clear that your business is being left behind if you need to run ads. Investing in Facebook ads isn’t just an option—it’s the cost of doing business in 2024.

Security Risks and Account Vulnerabilities

Relying solely on Facebook exposes your business to various security risks. Hacking, phishing, and other cyber threats can compromise accounts. This may lead to losing control of your business page and sensitive customer data. Additionally, Facebook’s policies may result in account suspension or deletion if your Page is mistakenly flagged for violating community guidelines.

For Filipino businesses, where online scams and cyber threats are increasingly prevalent, the risk of losing their entire online presence can be devastating. Recovering from such incidents requires time and resources, and rebuilding customer trust can often be challenging and costly.

Owning Your Store = Owning Your Future

When you own your store—whether it’s a website, an e-commerce platform, several ecommerce platforms, or another independent system—you gain complete control over how your business operates. You decide how to reach customers, manage sales, and adapt to changes. Your store becomes a stable foundation that no algorithm or policy can take away.

While Facebook remains a valuable tool for connecting with customers and promoting your business, relying solely on it for your online presence can introduce significant disadvantages. From lack of control and limited reach to high competition and security risks, the drawbacks can impede your business growth and sustainability.

Filipino business owners, especially those not technically inclined, should consider diversifying their online strategies by establishing a dedicated website, exploring other social media platforms, and leveraging digital marketing tools that offer greater control, broader reach, and more robust customer insights. Adopting a multifaceted online approach can mitigate the risks associated with over-reliance on Facebook and set your business up for long-term success.

How Upsell.ph Empowers Your Business

Upsell. Ph is an e-commerce platform designed to help Filipino business owners create and manage their online stores efficiently. Here’s how it can benefit your business:

Order Processing:

Integrating Upsell. Ph with Facebook

While owning your online store is essential, integrating it with Facebook can further enhance your reach and customer engagement:

Establishing your online store with Upsell and integrating it with Facebook creates a robust, multi-channel presence that mitigates the risks of relying solely on a single platform. This strategy empowers you to own your business’s future, ensuring long-term growth and success.

Leave a Reply

Your email address will not be published. Required fields are marked *