Below is my open letter to Mark Zuckberberg, CEO of Facebook. Please read and share on your social media accounts.

Dear Mark Zuckerberg:

You lost billions of dollars last week, as did Facebook.  The loss is on paper, which in the short term means very little to someone like yourself because you’re in it for the long term, or so I assume.  Good news is if the stock doesn’t tank again, you’ll be OK considering you’ve got more money than most Americans would make in 1,000 lifetimes.  So the question becomes, “will the stock tank again?”

Full disclosure: After holding Facebook stock for roughly two years, I sold it back in January.  Immediately, I took the profits and then placed a short against the stock knowing it would go down.

Back in 2016, I had purchased Facebook stock based on my own user experience.  The LIVE video platform you offered was amazing, and it led me to believe my small businesses could compete with the likes of Fox News and CNN.

Facebook LIVE had great potential for all broadcasters, content producers, and small businesses willing to make the investment in video publishing.  Thus, I bought your stock because I felt Facebook LIVE would grow into something that leveled the playing field, and in the process could potentially eliminate the cable and satellite TV companies.

I also purchased the stock because I saw the value in your ad network. The ability to target new customers based on their LIKES and preferences was the most powerful ad tool I had ever seen.

Other business owners I spoke to, regardless of their industries, all  agreed with me.  They loved Facebook LIVE and Facebook Ads because both products offered real, measurable value.  From connecting directly with our customers, to generating leads to our website, Facebook gave us the ability to build a brand without having to run 30-second TV spots. Simply put, Facebook offered a platform like no other. Finally, the tools small businesses had been waiting for had arrived, and so we dumped loads of ad money into your pockets.  But then the slide started.

Facebook began tinkering with its own algorithms.  Suddenly, without any real warning or reason, the ability to reach customers was limited.  The emails from Facebook users who had “LIKED” our pages stated flooding in.  It was an ocean of complaints and they all read the same. Our fans, customers and supporters claimed they no longer could “see or find us” in the newsfeed.

The problem wasn’t isolated to my company.  I spoke to other businesses from different industries and many of them complained about the same thing.

Slowly but surely the problem grew worse, and as a result, slowly but surely our ad spend with Facebook grew less.  Our investment in Facebook LIVE grew less.  And at the same time, Facebook’s arrogance grew huge.

Years ago, when we first started advertising with Facebook, you offered companies like mine access to a group of Facebook sales and support agents stationed in Phoenix, AZ.  Having those people accessible was as valuable as it was comforting.  It showed that you cared about us as advertisers and thus, there appeared to be a dedication on your part to make Facebook ads a win-win service.  If and when a problem surfaced, the impression I got was that Facebook would fix it.  But it was all short lived. Facebook took the support away.  Suddenly, without any warning, there was nobody to call for help or guidance.

Now, if there is a problem, there is nobody to call or email, there is only an option to report a problem via a link buried deep within the other useless links Facebook offers.  Having no other options, we use it from time to time.  The response we receive is usually days later, and appears to be computer generated as it typically has nothing to do with the reported problem.

The issues we’ve had with Facebook negatively affected our business, but even so, I held on to your stock because I knew it would take Wall Street a longer period of time to realize what I was seeing take place.

I finally sold the stock and then immediately placed my short in January after Facebook failed to respond to my request to speak with someone about potentially spending $250,000 on Facebook ads in 2018.

Facebook is losing users because the company has lost its original voice.  You’ve forgotten what got you to the top.  Facebook shouldn’t be dictated by what “you think” users should, and should not see. The platform only works if it caters to the needs and desires of its users and advertisers.  In short, allow us to reach the people who want to be reached without restrictions.

What happened to Facebook, and what will continue to happen to Facebook if it doesn’t change, is what happened to the TV networks who thought it was their place to decide when and what programming was made available to viewers.

Perhaps you’ve gotten too big.  Perhaps you’ve gotten too political.  Maybe you’ve bought into the nonsense that a mere $100,000 of ads placed by Russian accounts swayed an election?  Whatever it is, your problems are real.  Therefore, the Facebook slide will continue on, and I will continue to short your stock.

Filling feeds with baby pictures and cat videos will not build the Facebook user base, and it certainly will not entice advertisers to spend.  Perhaps I speak for myself in saying the following, but if Facebook continues down this path, the ad money will move to other platforms.   I do know one thing for certain, for as long as you continue as is, the $150,000 I spent in 2016 and 2017 on Facebook ads is a thing of the past.  Today, you get $0 from me.

Currently, your stock is hovering around $170 per share.  Assuming you will continue to ignore letters like this one, my 12-month price target for your stock is $130.  Sure, you’ll see a little ad spending pop during the mid term elections and Christmas, but long term you’ll never get back all the people and advertisers you are losing today.

The good news for Facebook is there is time left on the clock before it’s game over. With the economy humming, companies are looking to expand.  You should capitalize on this. Advertisers would be willing to try again if Facebook finds its way back to normal sooner than later.  However, the window is limited.  It’s a matter of time before Amazon or Twitter figure out how to replicate what you originally built. Once they figure it out, you’ll be the next MySpace.

I depart by saying I hope Facebook’s arrogance and poor customer service finds its way to the trash can. I hope you hit the reboot button and find your voice.  Go back to caring more about building a customer base instead of appeasing political warriors.  If you do return to normal, it would be nice to make money with the Facebook platform again.  If not, we’ll still make money with you, only it will be from shorting the stock.

Sincerely,
Dennis Michael Lynch

33 COMMENTS

  1. I would love to share this but for the last couple of weeks, I’m unable to. When I hit the fb app nothing happens!

  2. Good morning to you and I hope that Facebook wakes up and soon. It used to be a very good place to be with family and friends.

  3. I would love to share this but for the last couple of weeks, I haven’t been able to share from the app! I hit the fb app icon & it won’t come up to post!

  4. DML yet you can sign on easier on Facebook on your site. It’s a pain to sign up evrytime. I got rid of Facebook a few months ago as they told a friend of mine she had too many likes after liking a pic I posted of our local celebrate America…
    She could t like for a month..
    They are out of control , please let us have a way tmwrot letters on your sore with it signing every topic , thank you

    • That is the craziest thing I ever heard too many likes! Talk about controlling! If they have a like button why can t you like whatever it is!

    • Please DML fans, please proof read your comments so that we understand what your trying to say. It gets so frustrating trying to make out what people are commenting and I really do want to read what your commenting!! 😊

  5. Great letter, wonder if Suckerberg will pay it any heed. If not, good riddance to bad rubbish.

  6. Well said, DML. The good thing about all this FB nonsense is we now have a FABULOUS DML News app and I get all my news now from it. 😊

  7. Honestly, I don’t think Suckerberg and his Suckerettes have enough common sense to comprehend the letter. I truly believe that if brains were gasoline, Suckerberg and his tribe together won’t have enough to power a piss ant go kart two laps around a cheerio. Just my 2¢ worth.

  8. It would be nice if Facebook woke up and smelled the coffee We the Facebook users should decide what we want to see on Facebook. We are not two year olds that need choices made for us!
    Great Letter DML I hope & Pray someone with a BRAIN read & Understands it.
    We the people have had it with Facebooks control factor and will move on unless something changes for the better !

  9. Great letter DML, but I think, unfortunately, Zuckerberg has fallen so far to the left not sure they can come back. Apparently hiis parents never instilled i him the value of his religion when he can come out being an anti semite, anti Christian and anti American. We have had enough of his censoring, but he doesn’t censor rabid jihadi sites. His partnering with the likes of Soros will only doom his business.

    • I have read many times the CIA has taken over Facebook. Once that happened it was doomed. It’s now a site to profile you and sell the information.

  10. Literally the only reason I even get on FB is to update people on my husband’s pancreatic cancer. No other use for it!

    I do wish you would have talked about their conservative bias and expanded by saying we as users should be able to pick what we do or don’t want to see. Other than those two things it’s a great letter that I would hope he reads. I’m thinking you might end up in FB jail for it

  11. Awesome letter! Unfortunately it is probably falling on deaf ears. He is so far to the left it might be too late to come back.

  12. I have facebook for 3 reasons right now. 1) is to keep up with my family, especially my kids who are all over the country. My son is a Marine stationed on the East coast, my youngest daughter was in National Guard in Texas and is married to an Airman stationed down there, we have other family spread out across the Southwest as well. 2) Is to be able to watch you live when I can, and to share things that you have written. I actually get most of your articles from your app though, and watch your videos there as well. 3) this is the one that I mostly do when I get on facebook, I play games. I have several games that I play off on during the day when I’m bored.

    Over the last 3 days as I go through my timeline I have removed about 50 ads that have zero to do with my interests and are there only because I did an internet search for something then decided that I didn’t like the product or site but facebook decided that since I looked it up once it needed to show up several times on my timeline. I haven’t been on facebook yet today but will probably have to remove 10-15 more ads that have nothing to offer me or that I have an interest in. I will be very happy the day that I can get rid of facebook altogether because there is something to take it’s place.

  13. What is the address to write our own letters? I see only a fraction of the things I used to see in my newsfeed and I’m disgusted with that, and their censoring. Please post addy!

  14. Sadly Zuckerberg won’t pitty this letter and most likely won’t even read it, Facebook is on the decline, Good! For me i hope it tanks, Folds and vanishes… It would serve Zuckeerberg right for all the digusting political crap him and his liberal asshats spewed against Trump! I hope he loses it all!

  15. Well said DML. Too bad FB probably will not pay attention to your letter. I was hoping that FB would start doing the right thing but looks like they have lost their minds. Thanks for trying to reach them. Thanks for all your hard work to be sure we get the unvarnished truth.

  16. Excellent letter. It truly is an arrogance that would move someone to think he or she can dictate what people think by limiting what they read. Where is the old philosophy about “Not agreeing with what a person says, but dying defending their right to say it?” Thanks again DML for always taking the high road, always being truthful and speaking from the heart.

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