Facebook is now saying that if you are a business you must pay up or your reach is essentially zero.  I’ve not really pushed facebook at all because the reach is essentially zero.

Businesses that post free marketing pitches or reuse content from existing ads will suffer “a significant decrease in distribution,” Facebook warned in a post earlier this month announcing the coming change.

The upshot for Ms. Bossie is that “if I do not pay to promote the post or boost it, it’s hardly reaching anyone,” she says. Now, more than half her sales come via her Facebook posts, she estimates.

More than 80% of small companies using social media to promote their businesses list Facebook as their top marketing tool, followed by LinkedIn and Twitter, according to a recent survey of 2,292 small businesses by Webs, a digital services division of Vistaprint. The top three reasons owners cited for creating a Facebook page were customer acquisition, building a network of followers and increasing brand awareness, according to the survey.

Dan Levy, Facebook’s vice president of small business, says that Facebook’s paid-advertising options have become more effective recently and that companies should view Facebook as a tool to “help them grow their businesses, not a niche social solution to getting more reach or to make a post go viral.”

He says he has “a lot of empathy” for business owners who “are feeling this evolution” in the reduction of what he describes as organic reach. But, he says, organic reach is only one of several reasons companies benefit from having a presence on Facebook. Last month, there were more than one billion visits to Facebook pages directly. “Having a presence where you can be discovered still has a ton of value,” he says. “We don’t want them to spend any dollar with us unless it’s doing something spectacular to help them grow their business.”

Facebook’s push toward paid advertising is likely to aggravate an “already tense relationship between small businesses and social platforms over audience ownership,” says Steven Jacobs of Street Fight, a Colorado-based media-and-events firm covering local digital marketing. Businesses used to own their consumer relationships through email or other in-house marketing channels, or to buy them from newspapers, television and other traditional media outlets through ads. “But Yelp and now Facebook are trying to peddle a third model, he says: “renting—in which a business can build a community but never own an audience on a platform.”

via New Facebook Rules Will Sting Entrepreneurs – WSJ.

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