Social networking as business tool

I learned two things about social networking sites last week. That social networking "rots the brain" and could lead to “short attention spans, sensationalism, inability to empathize, and a shaky sense of identity.” says Lady Susan Greenfield a professor of synaptic pharmacology at Lincoln College, Oxford.

In another study, a survey conducted among 1,600 executives, firms that rely heavily on external social networks scored 24 percent higher on a measure of radical innovation than companies that don't says William Baker a professor of marketing at San Diego State University.

There seems to be a contradiction here. On one hand, it cautions people of the impact of social networking to the brain while the other tells you to join the fun with aggression. But the greater wisdom here is not so much about what they tell us but on how we use social networks properly.

I'm a newcomer to social networking. For the most part, I use it to connect with my relatives and friends. I did get a surprise of my life when I found some long lost friends. But what's specially surprising to me is how one can benefit from it to network with like-minded people who are as willing as your relatives and friends to offer referrals and opportunities to do business.

In Facebook for example, you will find groups among real estate people that facilitate buying and selling of properties. A friend who is also a realtor says to me that almost half of his sales leads are from his network in Facebook. Out of curiosity I tried joining some of the groups there and found that you can almost sell anything like sky is the limit. From books to shoes and even glutathione soaps!

"As business tools, Facebook, MySpace, Twitter and the rest are fantastic venues in which to establish a direct communication channel with your customers. These channels can then be used to offer promotions, product information, solicit feedback and conduct customer service. The friends you make on these networks can expose your brand to their networks and acts as an implicit endorsement. If your customers are happy with you, they will often tell their networks how much they love you." according David Erickson of eStrategy Internet Marketing.

Also, going back to Professor Baker's study, in social networking, one may find what he calls "Unexpected Collaborators." A real case example was mentioned using LinkedIn, Facebook, and Flickr where two strangers of the same field got their hands together on an online gaming business. First they exchanged career information using LinkedIn then used Flickr to assess the looks and aesthetics of their online game and used Facebook to enable users to try their new product.  

Social networking sites is "viral marketing on the cheap." It is quite simple and does not require a large investment of time and it is also almost always free. There are dozens of websites on the internet where you can sign up within a few minutes and network with millions of people quickly and easily.

Social networking has grown in tremendously for several years now. And in recent years, companies of any size have begun to see how much it can benefit them. If you’re not currently using social networking for your business, or if you’re using it incorrectly, you could be missing out on a lot.

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