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Service fees hamper local businesses

May 28, 2024

Small businesses have forever been the backbone of the American economy, and they often serve as the manifestation of the American dream for countless individuals. Unfortunately, small businesses are currently facing a litany of challenges, ranging from inflation to staffing issues. Yet, primarily online small businesses may face the most pernicious burden of all: Apple’s 30% commission fee on boosted posts.

As an automation consultant running an almost entirely online business, access to digital tools on platforms like Facebook and Instagram is crucial to my day-to-day operations. Automation consulting is certainly a niche, in which larger small businesses are often the focus of our efforts. As such, digital tools like boosted posts are invaluable in that they allow me to reach potential new clients with precision. It is a very specific sort of professional that can make use of an automation consultant, and social media is the medium through which I can connect with them. Yet, the Apple service charge puts a dent into the overall impact these services can have on my business. 

While a fee to use proprietary technology is logical, the blanket nature of Apple’s new service charge especially hampers small businesses. For us, every penny counts. With a 30% fee imposition on crucial services, we often find our innovation or customer services stifled due to this diversion of resources. Entrepreneurship is a path to financial freedom for women and minorities, but starting and running your own business is no small task. Unfortunately, economic inequalities are exacerbated by harsh fees. Big businesses can absorb the costs accrued by fees with relative ease, while small business owners such as myself are left scrambling to navigate an uneven playing field.

Ultimately, Apple’s 30% fee on boosted posts represents an imbalance of power. Small businesses operate on thin margins and are often dependent on free and low-cost resources to be a lifeline of their operations. By creating a strict barrier to entry, the principle of free market capitalism on which the United States economy was built is disregarded. Fortunately, small businesses are resilient. Entrepreneurs are continuing to advocate for fairer policies not only on Capitol Hill, but globally as well. In the pursuit of fairness, the next step is the enlistment of the consumer. If American consumers use their voice for change, they can continue to access more diverse choices in their buying experiences. Everyone loves options, which would slowly cease to exist in a monopolized market. 

To conclude, Apple’s 30% fee on boosted posts and advertisements represents a significant stress to small businesses, especially those that operate primarily in the digital space. The fee not only harms my business, but those of my clients as well. Digital advertising tools have been a revelation for small business owners, but a harsh fee undermines the tenets of economic fairness that we should all be in support of. We must continue to advocate for a more equitable future, especially in the realm of entrepreneurship. By doing so, more Americans will have opportunities to actualize their hopes and dreams, and reach financial freedom.

LaToya Russell is the owner of The OBM Office LLC of Lewes.

 

  • Cape Gazette commentaries are written by readers whose occupations, education, community positions or demonstrated focus in particular areas offer an opportunity to expand our readership's understanding or awareness of issues of interest.

Nick Roth is the news editor. He has been with the Cape Gazette since 2012, previously covering town beats in Milton and Lewes. In addition to serving on the editorial board and building pages, Nick is responsible for the weekly Delaware History in Photographs feature and enjoys writing stories about the Cape Region’s history. Prior to the Cape Gazette, Nick worked for the Delmarva Media Group, including the Delaware Wave, Delaware Coast Press and Salisbury Daily Times. He also contributed to The News Journal. Originally from Boyertown, Pa., Nick attended Shippensburg University in central Pennsylvania, graduating in 2007 with a bachelor’s degree in journalism. He’s won several MDDC awards during his career for both writing and photography. In his free time, he enjoys golfing, going to the beach with his family and cheering for Philadelphia sports teams. 

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