Part 2: Are We In a Social Media Recession?

🎧 Listen to this episode: Play on Buzzsprout →

If you caught my recent podcast episode, you know I had my rockstar wife, Kim, on the show dropping some serious knowledge bombs about what she calls the Platform Cycle Visual.

If you haven’t listened yet, go check it out (and subscribe while you’re at it—let’s get to 100K on YouTube, people!).

But today, I’m breaking it all down for you in blog form because this is too good not to share.

We’re in what I’ve been calling the social media recession.

Reach is down, engagement is tanking, and those thousands of likes you used to get? Yeah, they’re now in the hundreds—if you’re lucky.

Big names like Sean Cannell are sounding the alarm, and Kim’s been noticing it too with accounts she follows. So, what’s going on? Is it the platforms messing with the algorithm?

Is it user behavior? Or is it just that the digital space is so dang crowded now? Spoiler alert: it’s a mix of all three, and Kim’s Platform Cycle Visual explains exactly why this is happening and what you, as a business owner, need to do about it.

Let’s dive in!

The Platform Cycle: How Social Media Platforms Live, Grow, and (Sometimes) Die

Kim dropped this genius framework during one of our Traffic Bootcamps a couple of years ago, and I was like, “Dang, babe, this is fire!” She’s been in the content creation game for over 12 years, and when you’re in it that long, you start seeing patterns.

Her Platform Cycle Visual breaks down the lifecycle of social media platforms, and trust me, it’s a game-changer for understanding where to invest your time and energy as a business owner.

Here’s the gist:

1. The New Kid on the Block: A shiny new platform hits the scene—think Vine back in the day, Periscope, or more recently, Threads. It’s trendy, it’s cool, and early adopters (you know, the ones who love being first) jump on board. The platform’s giving out free reach like it’s candy at Halloween because they need users to get traction.

2. The Hype Train: Word spreads, and the platform starts blowing up. Entrepreneurs like us see the opportunity to build communities and get massive visibility. Remember when Threads dropped and had a record number of sign-ups in its first week? That’s the hype train in action—everyone’s talking about it, and the buzz is electric.

3. The Fork in the Road: This is where things get interesting. The platform either keeps growing and maturing (like TikTok did), or the buzz fizzles out (RIP Clubhouse). If it’s mismanaged or the excitement dies, the platform starts fading into obscurity. But if it keeps growing, it enters the next phase.

4. Rewarding Early Adopters: Platforms that make it past the fork start showering early adopters with love—crazy reach, high engagement, and super low ad costs (if they even have ads yet). This is when you can build a massive audience without spending a dime. TikTok nailed this phase, and it’s why it’s still a powerhouse.

5. Maturation Mode: As more people pile onto the platform, it starts catering to a broader demographic. Think Facebook going from college kids to your mom and grandma having accounts. The volume of content explodes, and suddenly, it’s not just one niche—it’s every niche. This is when ad costs go up, engagement gets harder to come by, and the platform starts to feel… crowded.

6. Pay-to-Play or Bust: Here’s where we’re at with platforms like Facebook, Instagram, and even YouTube now. The platform throttles organic reach, and it becomes a pay-to-play game. Why? Because investors want their cash-out, and platforms aren’t charities—they’re businesses. They hook you with free reach early on, you build your whole strategy around them, and then bam—time to run ads to keep growing.

7. Growth or Decline: At this point, the platform either finds a way to spark another growth cycle (like YouTube adding features to protect creators or fight AI-generated content) or it starts dwindling (looking at you, Facebook and Instagram). Some platforms fizzle out entirely, while others reinvent themselves to stay relevant.

Kim’s take? It’s about 60-40 platform decisions versus user behavior. The platforms (and their stakeholders—CEOs, boards, investors) drive 60-70% of what’s happening with algorithm tweaks and strategic shifts.

The other 40% is just what happens when a platform gets crowded—more users, more content, less attention to go around. And post-pandemic?

The online space exploded with new users (even my non-social-media brother and parents are on there now!), but fatigue, politics, and fake influencers are turning people off.

That’s creating a bubble that’s bursting, and we’re feeling the effects.

What This Means for You, the Business Owner

So, how do you navigate this social media recession and still grow your business? Here’s the deal: you don’t need a massive following to make bank.

You just need the right strategy. Here are my top takeaways from the convo with Kim:

1. Pick Your Predominant Platform and Triple Down: Stop trying to be everywhere at once. Pick the platform where your audience hangs out and go all in. If you’re serving a 35-55 crowd (like my parents or brother), Facebook might still be your spot. B2B? LinkedIn is hot right now—our client in bookkeeping is crushing it there because every business owner on LinkedIn needs her services. Physical products? TikTok Shop is a goldmine thanks to its scary-good algorithm. For us, we’re super bullish on YouTube because it’s replaced mainstream media for so many people (even Boomers and Gen Xers!).
2. Focus on Valued Attention, Not Vanity Metrics: Here’s a mind-blower from the podcast: Kim and I launched a new YouTube channel for our Business Knowledge Podcast. We’ve got less than 500 subscribers and six episodes, some with under 100 views. But guess what? We’ve already made $21,000 in 90 days from that channel alone. Why? Because we’re dialed in on the right topics, using the right keywords, and positioning ourselves as authorities to the right audience. You don’t need millions of views—you need the right people watching who are ready to buy.
3. Positioning Is Everything: This is where I think we’ve gone astray as entrepreneurs. We’re so obsessed with “post more, post more, post more” (thanks, early Gary V vibes) that we’re not being deliberate about why we’re posting. Are you just chasing likes, or are you positioning yourself as the go-to expert for your ideal customer? Hormozi’s killing it right now because he’s focused on money—not just views. Your content should drive profit, not just popularity. That’s why Kim and I are doubling down on teaching this in our Content to Customers Workshop (check it out at contenttocustomers.co).
4. Understand the Platform’s Stage: Before you invest 10-20 hours a week into a platform, ask yourself: Where is it in the cycle? Is it still in growth mode with tons of organic reach (like TikTok a few years ago)? Or is it mature and pay-to-play (like Instagram now)? If you’re jumping on a platform like LinkedIn, where attention isn’t as cannibalized yet, you’ve got a better shot at standing out. But even on a mature platform like YouTube, there’s still so much money to be made if you’re strategic.
5. Don’t Sleep on the Online Economy: Even with this social media recession, the online e-commerce economy is valued at $4.8 trillion in 2025 (per Shopify—and that’s probably lowballing it since it doesn’t include info products or services). People are still booking services, buying courses, and signing up for programs online like crazy. The opportunity is massive—you just have to focus on profit-driven content instead of chasing viral fame.

My Challenge to You

Here’s my call to action: stop chasing clout and start chasing cash.

Pick your platform, triple down on content that positions you as the expert, and make sure every post is moving the needle for your business.

If you’re feeling lost on how to do this, Kim and I have poured everything we know into our Content to Customers Workshop.

It’s a no-BS guide to turning your content into actual revenue, not just likes. Head over to contenttocustomers.co and sign up. Trust me, this is the strategy that’s working in 2025.

Oh, and one last thing—Kim and I recorded that podcast episode while driving around looking at investment properties with our dog, Tiger, in the backseat.

That’s just how we roll, maximizing every minute! So, whether you’re hustling from the road or your home office, get out there and make it happen.

Drop a comment below—where are you doubling down with your content? Let’s talk about it!

Until next time, keep building, keep scaling, and let’s turn that content into customers.

-Chris Michael Harris