Social media giant Meta now allows Instagram users to share multiple website links on their profiles, promising small businesses and content creators new ways to promote their work, while challenging the business model of Australian ‘link in bio’ unicorn Linktree.
For years, Instagram, owned by parent company Meta, has only allowed users to share one link in their profile, limiting the ability of viewers to leave Instagram’s ‘walled garden’ without opening a separate app or browser.
Australian startup Linktree was founded in 2016 to circumvent that rule, allowing Instagram users to share one custom link in their profile which, when opened, allows users to travel directly to multiple websites and other platforms outside the Meta ecosystem.
As the creator economy grew, and Meta stood to its one-link rule, Linktree exploded in popularity. Tens of millions of users operate Linktree links, including major celebrities, brands, and sports teams, garnering an estimated 1.2 billion monthly views as of August last year.
The Melbourne-founded startup’s valuation has risen dramatically, too: in March 2022, a Series B funding round, led by American firms Index and Coatue, and with local contribution from repeat backer AirTree Ventures, propelled LinkTree to a $1.7 billion valuation.
Linktree’s longstanding business model was challenged on Wednesday morning, when Instagram’s official Creators page announced users can now share not one, but five links in their profiles.
“We hope this flexibility can help you more effectively express yourself so your audience can learn more about YOU — your passions, causes you care about, brands you love, businesses you run, or anything else you want to share!” the account said.
https://www.instagram.com/p/CrMAyp4JzSP/?hl=en
Linktree is not wholly reliant on brands and influencers on Instagram, and now operates across TikTok and Twitter.
Meta’s multiple-link option does not boast the functionality of Linktree’s custom pages, either.
While Instagram’s ‘own brand’ multiple link system currently offers URLs and little else, Linktree pages offer bespoke Square, Paypal, and Shopify integrations, among others, allowing small businesses and creators more immediate access to shoppers.
Linktree is also popular among adult content creators and OnlyFans users, and it is unclear how Meta’s overarching content moderation policies will accommodate those users in the long term.
Regardless, Meta’s in-house solution — to a problem it created — is likely to cut against Linktree, one of several ‘link in bio’ leaders providing a workaround.
The challenge comes a matter of months after Linktree laid off approximately 50 staff, or 17% of its headcount, in response to fluctuating economic conditions.
More broadly, American lawmakers are discussing the merits of a broad TikTok ban, a move which, if enacted, would further slice away at Linktree’s userbase.
Linktree is yet to formally respond to Meta’s announcement, and SmartCompany has contacted Linktree for comment.
However, the startup did appear to take a swing at Mark Zuckerberg’s juggernaut, sharing a screenshot of Meta’s own Instagram profile sporting a Linktree link.
— Linktree (@Linktree_) April 18, 2023
That Instagram profile was quickly amended, with a singular link to the Meta website.
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
