Do bad reviews kill companies?

In 2024, a company with billions of dollars in funding and an army of intelligent people behind the scenes are no match for a guy with a camera.

What a time to be alive.

Social proof plays a massive role in the decisions we make from day to day.

As humans, it’s only natural that we're influenced by other humans. And as consumers, an important way we validate our decision-making is by seeing what others have to say about a product.

That’s why testimonials and reviews have always been such powerful forms of social proof. However, in the age of oversaturated markets, scammers, and dodgy company practices, consumers want to know the reviews they rely on are credible.

Enter independent reviewers.

Independent reviewers are creators who dedicate their brand to giving consumers 100% unbiased opinions on products and services. Unlike many influencers, these creators aren't swayed by brand deals or paid promos.

These independent reviewers have built strong trust with their audiences because they are so totally honest. And that trust means they have the power to negatively affect a brand's business with negative reviews.

A great example of this is New York creator Marques Brownlee, or @MKBHD. Brownlee's known for reviewing consumer electronics and weighing in on current tech trends. And he's amassed a following of almost 19 million subscribers on his YouTube channel.

Last month, Marques took to YouTube to pose the question:

Do bad reviews kill companies?

In the 14-minute video, Marques discusses the discourse he’s noticed popping up on his socials after his review of the Fisker Ocean, a midsized battery electric SUV, potentially sent the company into bankruptcy.

He talks about his advocacy for independent reviews. “If they’re not honest, they’re basically useless. Everything that comes from a review, all the consequences and everything that comes around it in the ecosystem of reviews, depends on it being truthful.”

And he’s right.

According to a study by Moz, a single bad review can cost a business about 22% of its potential customers.

The study also found that 67% of consumers are influenced by online reviews.

Marques is adamant his one review did not kill the Fisker company. He believes it was their terrible product and failure to respond to the multitude of bad reviews. Either way, the situation highlights the importance of independent journalism.

Without people like MKBHD giving us the honest and unbiased truth about what we buy, many would fall victim to the hype train social media creates for certain products.

And without him, many brands wouldn’t have honest feedback to work with.

Their survival is decided by whether they choose to listen.

-Sophie, Copywriter