Facebook Algorithm Kills Media
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Sam Parr shares a story about how his partner Joe's media company "Little Things" collapsed due to a Facebook algorithm change.
"My partner at Hampton Joe had a company called Little Things, which was a content clickbait website. He started it in New York and had multiple floors in an office building. They were killing it at $100 million in revenue.
He had a deal to sell the company and they went through due diligence. The deal was going to close in 2 weeks. At the time, Little Things was the most trafficked website from Facebook in the world - it was Little Things, then HuffPo, then Buzzfeed.
The deal was about to close for $100+ million. He was going to walk away with $50 million after taxes. Then 2 weeks before the money was supposed to go through, Facebook made that algorithm change. He lost the deal, and within a couple months, they had to shut down the company. It was all because they built everything on top of Facebook."
Sam Parr
Host of MFM and fitness influencer
Sam Parr is a serial entrepreneur and business media pioneer.
In 2016, he founded The Hustle, a business news media company that started in his kitchen with just $12 and grew to eight figures in revenue.
Sam led the charge in making newsletters popular when few believed in their potential.
After four successful years, he sold The Hustle to HubSpot, a publicly traded company. Now operating as HubSpot Media, The Hustle reaches 3 million readers daily, employs a team of nearly 100, and has been the launchpad for dozens of its staff to found their own media companies and newsletters.
Sam remains the host of the popular business podcast, My First Million, and continues to start and sell companies. He also co-founded Hampton, a highly vetted community for entrepreneurs, founders, and CEOs, and teaches people to write better through his platform, Copy That.