LRS 047: Why and How Facebook Bought Instagram for $1 Billion

Why and How Facebook Bought Instagram for $1 Billion - The Let's Reach Success Podcast by Lidiya K

Welcome to episode 47 of the LRS podcast, where I’ll talk about an interesting billion-dollar deal in the startup world.

I now know what my favorite social media platform is, and why. That’s Instagram. It’s where 20% of all Internet users are, it’s one of the most visually appealing places you can be online, it’s a platform where you can monetize your business and build your brand in a short time, and where users are more engaged than on any other channel.

You’ll see me write more about it on the Let’s Reach Success blog, and also see me grow my Instagram account slowly but steadily by providing inspiring content consistently.

I’ll be researching how some of the biggest influencers there built their following, and share the strategies and tools others use to generate an income by being part of the app 500 million people use actively every single month.

If you’re self-employed trying to get more clients, connect with like-minded people and just built a name for yourself in your niche, you need to have an account there and invest enough focus and time in it.

If you’re a company and want to scale your business, you also need to be there to gain an audience and send the traffic to your main product or service.

What you might want to know, though, is that Instagram is actually owned by Facebook.

Yes, Zuckerberg bought it back in 2012 from Kevin Systrom for the shocking amount of $1 billion, while the social media platform was still in its early days, and although promising, wasn’t making any real money.

Well, that’s considered one of the best deals in the tech world, and today I’ll find out why.


 

Show Notes:

  • What makes Instagram such a great product [2:03]
  • Why Zuck’s acquisition of Instagram is considered a success and what are the benefits for Kevin Systrom [3:27]
  • 6 reasons why Zuck paid a billion dollars for the social platform in its early days [5:05]

Mentioned:

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What do you think about Mark Zuckerberg’s decision? How do you like Instagram and the path it’s taken since 2012?

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5 Convincing Reasons to Start a Business in Your 20s and 30s

5 Convincing Reasons to Start a Business in Your 20s and 30s

Every day we hear about brilliant minds who have made their first million before the age of 25. There are even businessmen who reach success and experience the advantages of self-employment before they turn 21. This influx of young gifted entrepreneurs makes you think there is no room for startupers over a certain age in any industry. But is it really the case?

Seasoned business analytics and researchers say there is no ideal age to start a business. You can be a successful entrepreneur fresh out of high school, but it’s also not uncommon for people in their 40s to finally find their entrepreneurial path. However, 20s and 30s remain the most popular age for starting a business, and that’s what we’ll focus on today.

Why Start a Business in Your 20s and 30s

1. Risk-taking

The importance of taking risks and accepting the outcome of your decision doesn’t need any explanation for entrepreneurs. As a startup founder, you will face risks every day, and this is where a person with more business expertise can encounter their first difficulties.

When someone is over 40, they’ve likely already taken big risks and failed. It means that they’ll be much less inclined to do it again. This is how older businessmen think they avoid complications, but that is also how they miss opportunities.

People in their 20s and 30s normally don’t have that kind of experience. They understandably have qualms about risk-taking. However, in the end, they usually decide to make a risky move, and there is a very good chance the risk will pay off.

Related: 4 Ideas for Side Hustles You Can Start This Weekend

2. Knowledge

Those who launch their business after 40, usually have certain business experiences under their belt. They may have taken part in starting their own business or witnessed the birth of a business of a friend or coworker.

When you’re in your 20s or 30s, you may not have the same real-life knowledge of how businesses begin. Nevertheless, you have something much more important: the knowledge and skills you received at college.

The importance of college education for launching a prospering business is often overlooked. Yet there are essential things you can only learn in college, and that’s exactly the foundation you need for building a viable business.

3. Responsibilities

By the time they are 40, people accumulate a lot of financial responsibilities. Families, mortgages, car payments, and medical expenses not only eat up a large part of your budget but also make you much less flexible.

It’s a popular thought that businessmen in their 20s and 30s have nothing to lose. That may not be completely true, as some people start families when they’re fairly young. However, when you’re under 40, you have more freedom for making choices.

If you’re a forty-something father of three, your business decisions will be dictated by the risks you’re able to take. Young people have fewer things restricting them from making bold decisions and, ultimately, succeeding.

Related: How to Start a Profitable Blog – This step-by-step guide to starting a blog is a must for everyone who wants to start earning online and become self-employed. Having your own blog is the first step to selling products, making money from affiliate marketing, building a name for yourself, getting traffic and monetizing that attention.

4. Resilience

How To Turn Fear into Power and Create Personal Breakthrough

If there is one thing experienced entrepreneurs would like every beginner to know, it’s that launching a business will be a journey filled with ups and downs. If you look at business success stories, you’ll see that each of them comes with their share of failures.

Impressionable young businessmen don’t react great to failures. Their initial reaction can differ, but it always includes disappointment, resentment, and even a desire to quit. If they’re lucky, their support system won’t let them quit. If they’re not, then the days of their startup are numbered.

It’s a different story with people in their late 20s and 30s. They arrive at the starting point of their business with an understanding that failures are bound to happen. It doesn’t mean that they’re completely immune to failures, but they are guaranteed to have a more mature reaction.

5. Technology

Technology is a vital part of launching a startup these days. There are thousands of businesses that only exist online. Even if your business is completely offline, technology can still be a valuable aid in the business development.

People over 40 may understand the importance of using technology in their business. They may even move their business online or take successful steps to foray into the digital world.

However, they will never have the understanding of technology of a 28-year-old.

Today’s 30-year-olds are not only fully familiar with technology – many of them are actually digital natives. These people have spent most of their lives with the digital world being an essential aspect of living. That is why technology-skilled young entrepreneurs are the future of business.

Conclusion

According to those who have a multi-faceted experience in business, starting a business at any age has its challenges. Entrepreneurs that are 20, 30, 40, or 50 years old have their strong suits and weaknesses. However, there are many reasons why the age between 20 and 40 is the golden age for launching a business. Take risks, learn as you go, use your forte, don’t let anything distract you, and soon your name can be part of the world business hall of fame!

About The Author

Christine Acosta is a content manager at App Reviews. She specializes in digital marketing and content creation. Christine is also passionate about startups and business development. She uses her degree from the Florida Institute of Technology to offer sound advice to those who launch their own business.

starting a business at any age has its challenges. Entrepreneurs that are 20, 30, 40, or 50 years old have their strong suits and weaknesses. However, there are many reasons why the age between 20 and 40 is the golden age for launching a business. Check out this post to see what they are: #startabusiness #newbusiness #smallbusiness #bossbabe