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Social Networking for Entrepreneurs: Pros, Cons, Dos and Don’ts

© John Safin, September 12, 2009

Written by John Safin

Everyone wants to get the most out of the social networking trend. Social networking, referred to more frequently as “Web 2.0,” can bring you success as well as failure depending on how it’s used. Before jumping into the online social network, it’s good to have an understanding of how to build and track a personal network.

Principles of Networking

Using social networks gives you the ability to develop a connection with someone you wouldn’t ever meet, like the theory of “Six Degrees of Separation” where each of us is only six steps away from knowing anyone in the world. The person you know directly would be a “Primary” or a “Level One” contact. Your Level One person connects you to their personal primary contacts, which are your Secondary or Level Two contacts. Again, you are connected to all the Level Twos’ primary contacts, which are your Level Threes, and so on.

It might be easier to think of your contacts as a sunflower, what I call a “relationship flower.” Your Level One contact is the big center of the flower. Each of your Level Ones has his/her own set of contacts, so each of your primary contacts would be represented by an individual flower. Around the center of this flower is a row of petals – your Level Two contacts. The next outer ring would be your Level Three, and so on. This is the start of your relationship garden. Of course, your garden will grow when you add new relationship flowers. Levels of Connecting to People

Whenever you make a new Level One contact, he or she becomes the center of their own flower. Here’s an example: Jane is on your Level One and introduces you to Sam, one of her primary contacts. Now that you have direct contact with Sam, he changes from a Level Two (Jane’s contact) to your Level One, a direct contact. You now “plant” Sam as a “seed.” His relationship flower blooms separately with his ring of petals. Nature allows flowers to bloom unexpectedly. This will happen with your relationship garden when you meet people throughout the day. Plant the relationship flower and let your garden grow.

Just like a sunflower, petals too far from the center are less likely to be connected to the center and will drop off. Your relationship flowers behave the same way: The farther from the center, the less connectivity. Your best relationships are found within the first four levels.

With online social networking, you could have hundreds (thousands?) of relationship flowers, since each “friend,” “fan,” or “groupie” would be your primary contact. You will discover some of your online relationship flowers don’t “bloom” frequently while others are very active. The people who communicate infrequently to you will still need your attention since slow growing flowers require water and nutrients. The active online contacts are divided into two groups: Advocates and Ferals. Advocates sing your praises, pass along all your information to their friends, and do exactly what you would want them to do. People in this category would be the prize winning bouquet in your relationship garden. Feral contacts pay attention to your actions, but add personal comments, snide remarks, and take other action you would be consider disruptive. Feral contacts could be considered a “weed” in your relationship garden. Pull the weeds before they overrun your garden.

Now that the basics of networking is clear (it is, isn’t it?), the next step is to get into the online world.

Most professionals continue to struggle with methods for getting the best and most results from the time spent on the social websites. Many entrepreneurs have yet to take action because of the newness of social networking as a component of business operations. Before taking any action, it is good to know if social networking will help or hinder you.

Pros of Using Social Networking

● Low Cost – Let’s be completely honest: Social networking sites are free, which is usually a good price. Event announcements, monthly specials, or any other message you want delivered is accomplished at no cost. Some social networking sites offer enhanced profiles or upgrades for a small fee. Consider researching the add-on applications to see if you might benefit.

● Interactivity – You post a comment…your friends post a comment. You post a store special…your friends post how great it is. People want to be seen, heard, and know they are important to everyone, which is part of the reason American Idol has been a tremendous success. Social networking gives everyone the chance to be seen, to be heard, and know they are important right away. Social networking gives you instant interaction with all your connections or you can do this one-on-one, and all your friends can do the same. Use this to your advantage: Post a happy birthday or anniversary message with a discount at your store. Image how many other people will see your message. (Note: Discounted divorce lawyer services would not be an appropriate anniversary gift.)

● Discover New Connections – There is an entire new world of interpersonal connectivity through social networks. You’re making Level One connections. This gives you the opportunity to find potential collaborators, new partners, and new customers. Several social networking portals have a way for users to group with similar interests. Join a group for added exposure. Integrate two social sites to build even more activity, such as adding your YouTube video to your MySpace page.

● Exposure to a Large Audience – Your business (brand) will become known to people who live around the corner from you as well as around the world. Social networking sites will increase the possibility of a search engine finding your company. Expand the reach of your business beyond the local consumer. You will need to create a plan for expanding your service area to give the same quality service to your regional/global customers that your local customers have come to expect.

● Build a Bond – You become more familiar to people through a social networking page with increased positive interaction. A social networking page gives you the chance to relate personally. Instead of being seen as an aloof brick-and-mortar company, you will be seen as someone they can trust. This also gives your customers a place to provide instant testimonials about your services. Careful: The feedback might not always be pleasant.

● Talent Search – Your social network is useful when searching for new employees or new suppliers. Announce a job opening and watch how many applications you receive. Some social networking sites offer a job posting section.

● Target Marketing – Each person on your “friend” list provides an assortment of demographic information. Location, age, sex, and education are a selection of information available. Create as many connections as possible or find only the people who fit your model customer. Your special promotions could have different messages based on age ranges or sex, or broadcast a message to everyone, even people who are browsing your profile – looking at your page but not on your friends list.

● Enhanced Customer Service – This is a supplemental way for customers to interact with you. Many social networking sites have an instant messaging application, which could be used to give support through a chat system without having to buy one. This could save you the cost of having a toll free telephone number for support. This is a two-way channel; you have the ability to distribute information quickly to your customers. Have a little fun too. Placing a “Happy Monday” sticker on all your friends’ pages will give you added exposure and brighten someone else’s day…because everyone likes getting stickers.

Cons of Using Social Networking

● Loss of “Face” Time – More online interaction could mean fewer opportunities to meet face-to-face with a friend, prospect, client, or customer. Making a telephone call could become a difficult task because it’s sooo much easier to text and chat. Everyone becomes too reliant on the technology. What happens when your computer system crashes or the social networking site undergoes maintenance?

● Bad Image – Your employees might post a negative message about you, your customers, your competition, or maybe just something considered in bad taste. Your company might do everything correct online, but your employees’ online actions could reflect on you.

● Bad/Wrong Information – With so many messages going back and forth, it’s possible a mistake gets made or an incorrect message is distributed. You post a $100-off coupon instead of a $10-off coupon. Your sale on widgets starts on Saturday the 15^th, not Saturday the 14^th. You will lose trust with too many errors. Something posted on the Internet is posted forever.

● Too Many Distractions – The employees who monitor your social networking sites might spend too much time using the applications, network-based programs used to increase interaction on the social site. It’s easy to get distracted with running a farm or chatting in an online room.

● Contact’s Poor Technology – Not everyone is as tech savvy as you are. While your computer is up to date with the latest upgrades, there are people connected to your social page who are using a 10-year old computer. They are missing all the the flashy bells and whistles you’ve added to make your page look cool.

● Missed Opportunities – Not everyone is connected to the same social networks or even get on the computer unless it’s absolutely necessary. The technology is a great tool, but you need to use other ones at the same time.

● You Are Not the Only One – There are an estimated 300 million active subscribers to Facebook. The average user has 130 friends. (Source: facebook.com/press/info.php?statistics) Your message is getting lost in the online clutter. Interactive applications also take attention away from your message being noticed. Oh…your rivals also have a social page and are probably contacting a similar demographic as you.

● Slow Responses – Current business etiquette states you reply to an email the same day it was received and no longer than 24 hours; telephone messages returned within 48 hours. Social networking is instant communications. Someone will get mad when you take longer than a couple hours to reply. This is especially hazardous if your company is using social networking to provide customer support.

The pros and cons will give you a better understanding for using social networking. There are some actions that you need to perform or avoid to maximize your online presence.

DO…

● Know what you want from social networking. Like any business activity, there needs to be a measureable result. You can get an estimate from the Social Networking ROI Calculator. Simply, change the data in the yellow section to reflect your own numbers and press the UPDATE button. (You can always read the instructions at the top of the page.)

● Keep up with contacts. Regular one-on-one contact with everyone in your social network will make you a better online friend and build trust. Your friends will feel special you took the time to talk to personally talk to them.

● Create a schedule for social networking. Plan the times you will be active online. Preparing what messages to distribute will also add to a more effective online social life.

● Find the “right” people. Your business has a specific target audience, so start looking for your model customer first.

● Get involved with social networks specific to your industry. It’s a great way to build a referral network and learn the best practices from your peers.

● Host a live, in-person event. A great way to get face time with your friends is to invite them to an activity in the “real” world. This could be as simple as a special sale only for online friends to a seminar your company is sponsoring. Yes, promote the event to everyone and continue growing your relationship garden.

● Connect with non-Internet contacts. While you’re offering special deals and having more interaction through social websites, stay in touch with your non-computer using contacts. Keep all your Level Ones at that level.

● Monitor employees’ usage. It really is too easy to become distracted on social networking sites. Casual chat, watching videos, and playing games will take away from productive time.

● Create a company Web 2.0 policy. Simple guidelines will benefit everyone. The policy should include a statement as to how your employees connect to your company social page. It might not look good for you when your sales manager has some…um…interesting photos from his bachelor party posted. It’s your image and your company’s reputation at stake.

DO NOT…

● Create too many contacts. You need to interact with each person on a regular basis. Keep your Level Ones at that level.

● Over/Under communicate. Too many autographs, stickers, and pokes might become annoying – information overload. Too few messages could be interpreted as you’re not paying attention – information UNDERload.

Finally, Keep track of where every contact originates. Remember the example of Jane and Sam? When Sam makes a purchase or introduces you to someone new, you would thank Sam for the business. Thank Jane for introducing you to Sam. You have that sale because she took the time to introduce you. This simple action will strengthen the bond between you and your contacts.

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Well-known Social Networks

biznik.com

cmypitch.com

cofoundr.com

econnect.entrepreneur.com

fastpitchnetworking.com

focus.com