The Business Dependency Trap
The Sad Result Of What Happens When We Fail To Have True Interdependence
The Business Dependency Trap
The Sad Result Of What Happens When We Fail To Have True Interdependence
Written by a human, for humans, always.
She was 26 years old...
Living in India...
Struggling with 14-hour days from a company that did not care about her well-being...
As is common in the corporate world today.
She wanted to live a different life...
One where she was appreciated...
Where she could effectively use her talents and skills...
And where she could be human.
So she took a leap...
Became an entrepreneur.
She looked at her options...
And decided...
She wanted to build her business on LinkedIn.
It was going really well...
Having success with clients...
Building a significant following...
In the middle of closing multiple new deals.
Then...
Without warning...
Without explanation...
She was locked out of everything.
LinkedIn told her that she had “violated” some rule...
But only gave automated and vague responses that gave no details.
When she asked for her information...
Nothing was given.
Her entire business...
Was shut down...
For no obvious reason ever given.
She is now considering going back into the corporate world because she needs to survive.
This story...
Sadly...
Is one that is becoming far more common.
LinkedIn is not the first company to do something like this to a business...
It will not be the last.
Facebook destroyed many businesses when they decided to put less focus on certain parts of their platforms.
YouTube destroyed many businesses when they decided they wanted to focus on shorts to compete with TikTok.
Similar stories have happened with Instagram, X, and TikTok when these platforms suddenly changed their algorithms, rules, or decided to put AI in charge of things.
LinkedIn has joined the fray now.
Here’s the thing, though...
All of these businesses have fallen into the Business Dependency Trap.
How does it work?
Essentially...
These platforms make claims...
That they “care” about businesses...
That they will “support” these businesses...
That they will have success by moving to “their” platform.
And at first...
People do.
In some cases...
They have “so” much success...
That they built their entire business around that platform.
But...
What these businesses do not recognize...
Is that they are actually in a dependent relationship.
What do I mean?
They build their businesses in such a way that they “need” the platforms...
But...
The platforms are not dependent on their businesses.
It is an unequal relationship.
It is not a problem in the beginning...
Until...
One day...
The platform that had been “so dedicated” prior...
Decides to “move in a different direction”.
The sad part...
Is that the platform can do it...
Whenever they want...
Because they were never in a dedicated relationship with the businesses.
On the other hand...
These businesses...
Were completely dependent on the platform and how it supported them.
This is the Business Dependency Trap.
When one business becomes overly dependent on a business relationship...
But the other side is not equally dedicated or dependent.
The result...
Is that the vast majority of the time...
The latter will eventually change interests...
And in that process...
Destroys the business relationship for their own gain...
While the former is simply left with nothing.
We have seen it before...
We will see it again.
So...
What can businesses and leaders do to avoid this fate?
There is one of three things.
You can either diversify...
Not become over-dependent on any singular platform...
But often at the cost of needing more resources to keep up with demands...
Or...
You use a platform to the same extent that they use you...
Knowing that the terms of the relationship could change at any moment...
So you purposefully find a way to get your business “off” that platform to something you can control...
Or...
You create interdependent relationships.
This last option is, sadly, the one we see the least in our world today.
A truly interdependent relationship requires multiple parties to work together...
For each other’s benefits.
Now, what makes this last option so difficult...
Is that many people “believe” this is the type of relationship they are getting into with these platforms they are on.
But it is not.
Not really.
How can you tell if the relationship is truly interdependent...
Or if there is a business dependency trap?
Follow the money.
In a truly interdependent relationship...
When one company succeeds, the other does too, at a similar level.
This is where most businesses fail to see the full picture.
They “think” that on these platforms...
There is an interdependent relationship...
Where their success also leads to the platform’s success...
And it does...
But at a vastly smaller level than they believe.
That is the problem.
It is a very lopsided relationship...
One that does not really play a role in the decisions of the platforms.
Their focus is going to be on where their greatest dollars can be found...
And the rest...
Becomes collateral.
When you are looking at interdependent relationships...
You need to be on truly similar terms.
If you are not...
While building a significant portion of your business around that relationship...
You will always risk this final result.
My advice to every business owner and leader that I work with...
Is not to become dependent on any singular platform.
Most organizations...
Do not have the weight that would be required to establish a truly interdependent relationship with these platforms.
That is just not how these types of platforms work.
They will gladly take your money...
But do not expect them to be your friend and ally.
You can use their services...
But understand the reality that they do not really care about you or your business.
They will happily make you collateral damage if they believe something else will be better for them...
Even if they are absolutely wrong...
As we have seen with Meta’s shattered Metaverse dreams.
If you do end up using their services...
Do not use them in such a way as to become dependent on them.
Pull your audience off their platform somehow.
Create a community off their platform...
Get them on an email list...
Get their phone numbers to text them...
But do not become dependent on them...
Because when you do...
That is when the trap becomes complete...
And you are at the mercy of whatever whims they have...
Usually...
To your detriment.
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What can you do?
So that you do not fall into this trap?
That is what we will look at next.
I have 6 rules to follow.
Let’s Dive In…
