TikTok has 1.12 billion monthly active users worldwide, with an estimated 34 million TikTok videos posted each day. Amongst this huge array of content lurks some dangerous advice that many viewers engage with daily. This includes matters relating to the business world.
Due to the over simplified short clips, and lack of regulation, there is room for misinformation to slip into business advice videos on TikTok. As a result, taking business or financial advice from the platform can be risky.
Some of the incorrect information has been selected by the company Liquidation Centre, who have reviewed some of the business advice on the platform. The company has provided some of the findings to Digital Journal.
The 90/10 Business Model
The 90/10 business model focuses on the idea that 90% of a company’s revenue comes from 10% of its customers. This allows businesses to tailor their marketing and sales efforts to maximise their impact. Essentially, businesses would monetise the top 10%, by creating special products and services for this consumer base. The model is based on the idea that the top 10% have the majority of the purchasing power.
While this approach may sound productive, it is by no means a ‘one size fits all’ strategy, and some businesses may not thrive from using this model. If the focus is misplaced, the model could lead to negative financial outcomes for your business. Careful consideration is therefore essential to ensure it is the right fit for your company.
Use Competitor Reviews to Uncover What Your Target Market Really Wants
This advice may seem relatively useful, as businesses are always seeking to find out what their target market and consumer base needs. Competitor reviews could reveal what consumers are happy with and highlight areas where they would like to see improvements.
However, there are risks involved in using reviews as the main source of consumer sentiment. Reviews could be skewed by fake reviews, or paid feedback, potentially resulting in an inaccurate perception of what the target market needs and wants.
Hence, it is essential for businesses to analyse and speak with their target audience directly, which offers a much clearer, unbiased, and accurate way of assessing the market.
‘Get Rich Quick’ Advice
TikTok is home to an array of ‘get rich quick’ advice from business and financial influencers. However, this advice is to be approached cautiously, as much of it isn’t practical, and could even be costly for businesses.
For example, some influencers promote the idea of outsourcing work to countries with lower labour costs. Whilst this may seem like a short-term solution to help cut costs, it can have significant negative impacts on quality of products, which can lead to a decline in consumer satisfaction and damage to your company reputation. There are also fundamental ethical concerns, such as potential exploitation of workers in developing countries, which can impact company image and morale. The short-term savings from such strategies may quickly be overshadowed by the long-term harm they cause to a business’s reputation and overall success.
Richard Hunt, Director at Liquidation Centre advises: “Every business is unique, with different goals, brands and challenges. As a result, each requires a tailored approach. Taking advice from brief, generic clips, often without proper sense-checking, can harm your business. In the world of business, there is no one-size-fits-all solution.”
