Entrepreneurs Question Value of Social Media (Wall Street Journal)
It 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?
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