🚫 How Fake News Is KILLING Your Business

In the next 2 minutes it takes for you to read this newsletter, I can PROMISE that you’ll never look at the news, social media, or advertisements the same way again.

Ready? Take a look at this image. 👇

If you’re like me, it appears that the man on the upper right is taller than the other two behind him, right?

WRONG! ❌

In fact, all three people you see in that image are the exact same size. (Don’t believe me? Don’t worry—I didn’t believe it either at first).

This simple trick shows how easily our eyes can be fooled. And it happens all the time, especially on the internet.

Now, think about this happening online, where things can get real confusing, real fast. Today, we get news and updates from platforms like Facebook, Instagram, Twitter, and TikTok…And now, more than ever, many posts we see or read are NOT true.

Misleading headlines, fake stories, and wrong numbers are EVERYWHERE. People are trying to sway people via propaganda to their viewpoint. We are even seeing AI being used in the form of deep fakes, and it’s happening to everyone…Including us Entrepreneurs.

Daniel Kahneman, a renowned psychologist, coined a term for our tendency to take things at face value: WYSIATI (What You See Is All There Is).

Kahneman states that when we are “presented with evidence, especially those that confirm our mental model, we do not question what evidence might be missing.”

It’s human nature to form conclusions based on the information readily available to us, that support our belief system without digging deeper. Today in a digital world, where misinformation spreads faster than the truth, this habit can cause unnecessary challenges.

Here are a couple of other real-world business examples:

EXAMPLE #1: Fake Testimonials or Hate

Imagine waking up one morning to find your company's name trending on social media…But for the wrong reasons. A viral post accuses your brand of some unethical practices, complete with images and customer testimonials.

Panic sets in as you see customers vowing NEVER to buy from you again. But after doing some digging, you realize that the images were photoshopped and the testimonials are fake. You search online and cannot find the source of the FAKE NEWS.

The damage to your brand's reputation, however, is real and significant. In the rush to share sensational news, people often overlook verifying the authenticity of the claims made, and the consequences can be dire for businesses caught in the crossfire.

EXAMPLE #2: False Advertising

Now, let’s talk about influencer endorsements, a common way to advertise in today’s social media-driven world.

Let’s say you come across a popular influencer praising a new software tool that promises to DOUBLE your social media engagement. The influencer's post is filled with impressive screenshots and metrics.

Tempted, you invest in the software, only to find out later that the influencer was paid for the endorsement and the software doesn't deliver as promised.

The metrics shown were cherry-picked and the influencer may have never actually used the software on their own profiles. At the end of the day, this misinformation led to a bad investment and wasted time trying to integrate a tool that doesn’t deliver.

This is why the FTC (Federal Trade Commission) is cracking down on testimonials and has LOTS of new rules around publishing them (especially if it's a paid endorsement—It must be reported!)

Moral of the story?

The truth is not always what meets the eye, or in this case, what fills the screen.

Misinformation is not just misleading; it can be dangerous. It can create unnecessary panic, lead to wrong decisions, and even harm your business's reputation.

And the worst part? We may not even realize we're falling for it.

So now the question becomes…How can we, as Entrepreneurs, avoid being fooled and ensure we’re only consuming reputable content? 👇

1. Double-Check: Don’t just believe something because it sounds right or because many people are talking about it. Get more information and double-check (heck, even triple-check) the facts.
2. Ask Questions: If something doesn’t make sense or feels off, ask questions. Look for answers from different places. Remember—A curious mind is less likely to be fooled.
3. Talk to Others: Share what you find with your team, friends, or other business folks. They might have helpful thoughts or more information. Different viewpoints can help see the full picture.

1. Be Skeptical: Maintain a healthy level of skepticism, especially when the information seems too good (or too bad) to be true.

1. Don’t Overreact: It's easy to jump to conclusions, especially when something you see online triggers an emotional response. Take a moment to assess the information without letting emotions drive your actions.

And remember, — the “What You See Is All There Is” mindset doesn’t just stop at business, it goes into how we see people and the world around us too. We saw this in October with riots and protests when news sources around the world said that Israel bombed both a hospital and a Greek Orthodox Church, which was later found to be false.

This way of “WYSIATI” thinking can lead to a lot of unfairness like bias and stereotyping. It happens when we don’t take the time to really understand someone (or something) and just judge quickly based on what we see or what is presented to us at face value.

Take stereotypes, for instance.

This happens when we lump everyone from a certain group together. For example, thinking that all teenagers are troublemakers or all elderly people are out of touch.

People make snap judgments without taking the time to know individuals for who they truly are.

Similarly, social media often becomes an echo chamber where we keep hearing the same opinions that match our own. In fact, the AI algorithms are designed to share MORE of what you view and interact with versus contrarian ideas.

Because of this, if we don't venture outside our comfort zones to listen to differing viewpoints, we risk staying stuck in our own little bubbles, missing out on understanding and appreciating the diverse world around us, and not seeing the truth.

So, this year, I encourage you to challenge the “What You See Is All There Is” mindset.

Next time you see an ad, news piece, or viral social media post, I encourage you to go beyond the surface, question what you see, and seek to understand the full picture.

In doing so, you’ll not only make smarter decisions in business, but also help to create a more understanding and less judgmental society.

To your success,

David

P.S. If you want to double your business in the next 6-12 months, let's chat. Click here and apply for a free 45 min strategy consultation ($497 Value!)