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The Pros & Cons of Social Networking as a business

Written by: Tom Lindridge

Article Overview: The popularity of social networking sites has triggered a rapid rise in companies using these sites as an ideal business development platform. Therefore I decided to reveal the positive and negative factors with this modern advertising method.

The Pros & Cons of Social Networking as a business

The euphoria behind social networking sites has instigated a debate on what these sites can actually offer as a business proposition. With billions of people using Facebook, Twitter, Youtube and Linkedin (to name a few) as a way to interact with others, there is a potential consumer base for any business. After reading a blog from digital buzz on how businesses are losing traffic through the evolution of social sites, I decided to follow up with an article that reveals exactly what impact a social company profile can have on an organisation.

Naturally, like all advertising campaigns, there are positive and negative implications to consider. With this in mind, any company has to take serious precautions before promoting their brand strategy within these networks.

Be confident that you examine the negative aspects of social sites to ensure that you don't neglect anything......

For the majority of companies, networking sites are an unknown place, viewed by many as a social arena for the younger generation to interact. Therefore lack of knowledge can ultimately lead to common mistakes or companies failing to take full advantage of what's on offer.

Sites like Facebook host a foundation for a mass audience and within any industry it is near impossible to please every customer, therefore companies open up a public opportunity for people to express their views regarding the qualities or not of your services.

Hopefully most organisations should be confident of receiving the majority positive feedback. Nevertheless companies have to ensure that detailed brand management activities are ongoing to monitor what is being said about their brand and have the ability to respond productively.

It goes without saying that a business's reputation can take years to build up, but only five minutes to tarnish. Social sites have become a common source for internet fraudsters. People commit identity fraud to betend they are someone they are not. Frequent checks and well structured strategies will allow an organisation to easily keep on top of any such activities.

On the flip side, the high number of people who use social sites can provide the opportunity for financial benefits when planned properly......

An obvious start would be to target your desired audience. With so many users online, an organisation can easily identify potential customers. The beauty of social sites is by publicising promotions or comments, you are dramatically increasing the likelihood of a new customer gaining awareness of your brand.

Not only that, but the process is quick and efficient and brings your promotions to life immediately. If a current customers likes your ‘updates' then they become influenced into resubmitting the content elsewhere.

Twitter and Facebook have built convenient platforms to host events and arrange face-to-face interaction. Just last week, I attended a networking event in Rochester to find out more about the people I interact with on these sites, and they all have similar goals and interests to me.

Briefly heading back to brand management, customers are more inclined to use a business if they feel confident in receiving high standards of service. By creating fan bases, you are encouraging customers to leave feedback, and the more feedback received the more likely the chance of attracting new customers.

Social sites can also improve customer interaction. This way customers gain a better understanding of the company, improve communication and provide an efficient method of monitoring customer relations. Information via this approach can provide key market research and enable better customer communication in the future.

As more companies discover the popularity of these sites, more benefits are discovered too. Social arenas are the ideal platform to use as a recruitment tool. As well as advertise job positions to a wider audience you can also discover a lot more about candidates before deciding whether to pursue their application.

PPC campaigns are also an effective way to alert consumers to your adverts. Twitter are the newest site to add this service, but advertising is a fundamental way to attract potential consumers. By running online advertising campaigns through these sites, you can maintain a controlled budget towards a relevant audience.

Depending on your business, social sites can offer more advantages to some than others, although I am confident in recommending any organisation to give them a try. If your company lacks the knowledge of social sites or feel more comfortable outsourcing their social networking campaigns, then get in touch and receive some valuable advice.

Oh and did I mention that most social sites are free to sign up.........!?

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Article Tags: advertising campaigns, brand management, brand strategy, business proposition, euphoria, frequent checks, internet fraudsters, lack of knowledge, linkedin, management activities, mass audience, negative aspects, negative implications, neglect, positive feedback, social arena, social networking sites, unknown place, younger generation, youtube



Related Forum Posts
Re: How can a social networking site make serious money? - Hi There, It is quite interesting, that some Social Networking do produce an income. I think testimonials are always a benefit to share. See one below: This Social Network has changed my life! Every night is a Friday night and everyday is a Saturday!! Because of it, I have been able to leave the workforce 10 years early.It has given me back my life. Many of us would like to retire early. I am sure there are many more. The point is of focusing with great determination. The ongoing challenge is to stay focussed and not be sidetracked into a newer scheme or so. Also I have read, during this financial turmoil, more people turn to Social Networking for various reasons.
Re: Simple Idea - Great Advice. - What your success stories on Social Networking for more contacts and connections? Do you have any good business books to suggest? I love the idea of connecting and sharing with other entrepreneurs. Thank you for your input!
Re: Tactics for Blog Traffic - some more tips to drive traffic to blog or to promote a blog. Squidoo Lens Creation Hub Pages Creation Social Bookmarking (Digg, Delicious, Stumble, Reddit etc.) Be helpful in forums Social Networking (Facebook, Twitter, Myspace, LinkedIn etc.) syndication blog commenting (other blogs) Guest post
Re: How to Promote Your Business Online - Thanks for the list ZekeLL , I use many of these ways to promote my online business and am looking into using more of them. I also use Article Marketing, Social Networking and Blogging which I find a very good way to get traffic to my site and also gain valuable backlinks. Take care, Carol
Re: UPDATES: New Campaign! New Layout! New Ideas! - GT - thanks for the FYI - I'm not sure if we'll put a link back. Something to consider though! Trent - the new category is "Social Network and Media" which was put in to compliment the Online Businesses category that currently exists. Overall the new categories are: - Looking For, Networking and Events - Review My... - Social Network and Media - Brags and Rants These came as a result of Ringo doing research on other forums and thinking about what could be improved on ours to give a better experience for everyone. I hope you enjoy them! David, I'm looking forward to reading your Brag / Rant!


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