Small Business and Social Networks Are Yet to Be a Match

Posted by Paul Christ March 16, 2010

Labels: Marketing How-to, Marketing Strategy, Trends

Entrepreneurs Question Value of Social Media (Wall Street Journal)

No Sales from Social MediaIt is virtually impossible to escape the hype surrounding social network websites (a.k.a., social media).  The buzz regarding social networks is so strong that all types of businesses are now seriously considering whether they MUST start incorporating it into how they do business.  In particular, businesses are wondering how social networks can be utilized as part of their marketing strategy.  They have heard about the success some companies have had with marketing through social networks and think the time is now right to jump in with both feet.

Yet, for many small business owners their initial experience with marketing through social networks has not gone well.  As pointed out in this story, many entrepreneurs are in the dark when it comes to understanding how social networks can be used to meet their marketing objectives.  And because of this experience they are questioning whether Facebook, Twitter, MySpace and other services are all talk and no action when it comes to being a valuable marketing tool.

Meanwhile, a separate survey of 500 U.S. small-business owners from the same sponsors found that just 22% made a profit last year from promoting their firms on social media, while 53% said they broke even. What's more, 19% said they actually lost money due to their social-media initiatives.

In addition to what is discussed in this story, what other factors affect whether marketing through social networks is something a small business should consider?

Image by KateMonkey

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3 Comments

  1. Tania makes this comment

    August 18, 2010

    Today's consumers, more than ever, want a relationship with those from whom they purchase.

  2. Brooke makes this comment

    March 23, 2010

    Many businesses, large and small, only see the social media space as another venue to interruptive advertising of products and services. Today's consumer, more than ever, wants a relationship with those from whom they purchase. A well thought out social media initiative can deliver seller authenticity like no other medium. Real stories about real people is the preferred method. Product pushing is a waste of time and effort.

  3. Ruth Ann makes this comment

    March 17, 2010

    I suspect the biggest failure of business people in the realm of social media and who generally are not marketing or sales professionals is not to recognize the role it plays in boosting ranking in organic search and the value of organic search. Add this to a lack of resources to integrate social media with lead generation programs and you have many, many folks out there not doing much marketing at all and failing at social media.

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