In the current landscape of entrepreneurship and digital business, many companies are seduced by the allure and ease of “rented land” – third-party platforms upon which they build their customer base, market their products, and conduct sales. This thought leadership paper dives into the pitfalls of over-reliance on such rented platforms, illuminating the risks and advocating for a strategic lean towards owned land – resources and channels a company controls outright.
In a world propelled by instant gratification and rapid growth, “rented land” – commonly social media platforms, marketplaces, and third-party hosted services – provides a tempting launchpad for businesses seeking visibility and customer engagement without substantial initial investment. Platforms such as Instagram, Facebook, and Medium can offer fertile ground for growing a following.
However, building on rented land is a foundation fraught with uncertainty. The algorithm updates on platforms like Instagram in 2019, which shuffled the visibility and reach of content drastically, serve as cautionary tales for businesses heavily reliant on such volatile ecosystems.
Rented Land vs. Owned Land
Entrepreneurs place immense value in agility and adaptability. However, the volatile nature of rented land can pose obstacles to these qualities. When Instagram altered its algorithm, many businesses, particularly in influencer marketing, scrambled to recalibrate their strategies overnight (Vaynerchuk, 2019). The resulting instability underlines the pitfalls of dependency on platforms over which business owners have little to no control.
Facebook’s recent outage a couple of months ago starkly highlights the dangers of over-reliance on rented land. For many businesses, especially those that have concentrated their marketing efforts and customer engagement strategies solely on this platform, the blackout was not just a temporary inconvenience but a significant disruption in operations, sales, and customer communication. This event is a potent reminder of the inherent instability in building a brand’s digital presence exclusively on platforms over which they have no control. It underscores the importance of diversifying digital assets and enhancing efforts towards developing “owned land” such as company websites and email lists that ensure continuous, direct access to their audience.
When it comes to building an e-commerce brand, many small business owners gravitate towards Shopify because of its user-friendly interface and ready-made templates. However, choosing Shopify is akin to establishing your store on rented land. While it might seem like a convenient and low-effort solution at the outset, it limits your control over your e-commerce environment. You are bound by Shopify’s terms of service, transaction fees, and design constraints, which can change at any moment, impacting your operational flexibility and cost structure.
In contrast, opting to self-host your e-commerce website with your own hosting plan and utilizing WooCommerce offers a robust alternative. This approach places you on “owned land,” where you have full control over your e-commerce environment. With WooCommerce, a powerful open-source e-commerce plugin for WordPress, you gain the freedom to customize your store extensively, from the user experience design to the backend logistics, without facing the limitations imposed by a third-party platform. Furthermore, owning your hosting eliminates transaction fees tied to sales, beyond those charged by payment gateways, ensuring that more revenue stays within your business. This level of autonomy and control is critical for establishing a resilient e-commerce platform that can evolve with your business needs and withstand the unpredictabilities of digital commerce.
Medium’s pivot to a subscription-based model drastically impacted the reach and revenue of independent writers who once thrived on the platform (Patel, 2020). Such unpredictability highlights the fragility of businesses tethered to rented land.
Conversely, the transition to owned land, as exemplified by Warby Parker, provides a blueprint for sustainable growth. The eyewear company expanded from exclusively selling through department store concessions to investing in their own physical stores, thus solidifying their brand presence and customer loyalty.
The testimony of HubSpot champions the benefits of a steadfast commitment to owned platforms, with the company’s resultant growth through their website and blog reinforcing this approach. The success of owned land advocates a strategy that secures control, fosters direct relationships with consumers, and bypasses the unpredictability of rented platforms.
The Stability and Control of Owned Land
Owned land, including proprietary websites, software, and physical retail spaces, offers businesses stability, control, and direct access to customer data and relationships. It insulates companies from the whims of third-party policies and changes, ensuring uninterrupted contact with their audience.
For example, in a comparison of two startups—one building an audience on rented land (i.e. Facebook or Instagram), and the other focusing on owned platforms such as their own self-hosted website—long-term data show consistency in audience engagement, revenue, and brand identity for those who prioritize ownership (Harvard Business Review, 2021).
Strategic Recommendations
To pivot effectively from the peril of rented land, businesses must first reassess their platform utilization to emphasize their owned channels. Proactively crafting a content strategy that bolsters their owned sites and using rented platforms for awareness, rather than reliance, can help diversify presence and mitigate risk.
Building a website or blog and developing a robust email marketing campaign are foundational steps to establishing an owned land presence. Engaging with customers directly on these platforms not only secures data sovereignty but also cultivates enduring relationships that are impervious to third-party algorithmic shifts.
Conclusion
The trajectory of building on rented land resembles constructing a house on shifting sand. To cement a legacy and safeguard a business’s future, entrepreneurs and business owners must heed the call to secure, harness, and cultivate owned platforms.
Forethought, investment in owned resources, and a diversified online presence that strategically utilizes both rented and owned spaces offer the most reliable route to enduring success and stability.
It is imperative that businesses begin the transition towards establishing greater control over their operations – building not just a business, but a lasting legacy that stands firm against the turbulent tides of digital change.
About the Author
Nick Roy is a seasoned entrepreneur and thought leader in the digital and startup space with 15 years of experience guiding businesses toward sustainable growth. A regular contributor to industry publications and speaker at leading business conferences, Nick Roy possesses a unique insight into the dynamics of building successful and resilient business models in today’s economy.
References
Vaynerchuk, G. (2019). Long-term thinking in a short-term world. VaynerX LLC.
Patel, N. (2020). The impact of platform dependency. Neil Patel Digital, LLC.
Harvard Business Review. (2021). The case for investing in owned platforms. Harvard Business Publishing.
Nick, Founder & CEO of Wiener Squad Media
Nick is the visionary founder and CEO of Wiener Squad Media, based in Orlando, FL, where he passionately supports Republican, Libertarian, and other conservative entrepreneurs in building and growing their businesses through effective website design and digital marketing strategies. With a strong background in marketing, Nick previously ran a successful marketing agency for 15 years that achieved seven-figure revenue before an unfortunate acquisition led to its closure. This experience fueled his resolve to create Wiener Squad Media, driven by a mission to provide outstanding digital marketing services tailored specifically for conservative-owned small businesses.
Holding a Master of Science in Marketing from Hawaii Pacific University (2003), Nick is currently furthering his education with an MBA to enhance his problem-solving skills and ensure that past challenges don’t repeat themselves. He firmly believes in the marathon approach to business growth, prioritizing sustainable practices over quick fixes like investor capital. Committed to employee welfare, Nick maintains a starting wage of $25 per hour for his staff and caps his own salary at $80,000 plus bonuses.
At Wiener Squad Media, our values are based on the Five Pillars of Giving – protecting the First and Second Amendments, Sanctity of Life, supporting our military, veteran, and first responder heroes, and making sure no shelter dog is left behind by finding each one a forever home. At Wiener Squad Media, we are not just about success but also about making a positive impact on society while achieving it.
Outside of work, Nick is an avid political activist who engages in discussions supporting conservative values. He volunteers at local animal shelters, participates in pet adoption events to help find all unwanted dogs a forever home. Committed to nurturing the next generation of entrepreneurs, Nick dedicates time to coaching and mentoring other aspiring conservative business owners, sharing his wealth of knowledge and experience in the industry.
