5 tips for entrepreneurs who want to use the power of SNS
In a world where the word “unfriend” is actually now allowed in our daily vernacular, there is no denying we have been poked on the Facebook world.
The day my former nanny “friended me,” I felt my entire life, all the people I met during my travels, high school buddies, past girlfriends, business partners, former enemies and future enemies all converged in a list called friends. Facebook creator Mark Zuckerberg, who (at least in the David Fincher movie released this week) ironically has no friends, has reinvented the word.
Facebook is the third most populated country in the world. It may very well overtake China’s population in the next decade if its current growth curve were to continue. Considering China is a Facebook-free zone. The resulting enterprise has a community of an estimated 350 million users today and a market value of $25 billion.
It is fast emerging as the second highest traffic website for video streaming (after YouTube), and will soon revolutionize how advertising is delivered. Imagine a product being endorsed to you by your friends. This is a powerful take on word of mouth. This also is a reminder that, whatever distractions there may be in the world, power is truly with the people. I think of it as democratized advertising. A world where products are ranked, rated and endorsed by people you know. Sounds like a unique value proposition. Google, beware. There’s no upping the stakes here!
With this kind of kingdom behind him, Marc Zuckerberg has established himself as Internet royalty. He shares this honor with the founders of Google, Jeff Bezos of Amazon, the eBay guys, Jerry Yang of Yahoo and a slew of Internet start-ups that made the top 40 under 40 list. It’s good to be young. And rich.
The consumer Internet industry in the Philippines is a very US-centric one. I do say this with some authority as I’ve built local Internet communities several times over. We launched the first snail mail to e-mail service in 2000 called Balikbayanmail.com with 100,000 users. We then launched (and sold to a US company) match.ph (now itzamatch.com) with over 150,000 users, and made our big splash with egames, which has over 11 million registered members.
Trying to do an Internet-based business to consumer (b2c) model in the Philippines can be challenging due to the fact that most Pinoy Internet users have complete and unadulterated access to US sites. Unlike, say, China where language and culture are a barrier, most Filipinos who are on the Internet are fluent in English and hence freely access US sites. Friendster and Facebook both have a large base of Filipino users. Pinoy Internet users are also some of the most active people on YouTube and Google. This has meant local “copycat” sites have no chance of competing against the larger and more well-funded US Internet portals. Sites like Pinoymail, Yehey and Edsamail are all a thing of the past now. They all tried but they just lacked that little secret something. Due to this fact, no local company has had the balls to launch a local social networking site. It simply would not be able to compete with the likes of Facebook. I think it’s safe to say that no other place has been able to do so completely either. Up to this day I get invitations for different networking sites such a Small World and Que Pasa and Multiply but as much as I’d love to have more party sites to put in my pocket, Facebook seems to have all that I need.
What makes Facebook so special? Some people say it is because of all the cool third party apps, or because of all the hot chicks on Facebook. For me, it is for one simple reason. Facebook does one thing really well. It provides you the tools and social skills to socialize with other people.
This is a genius invention from socially inept founder Zuckerberg. According to the movie, he was a bit of a tool in college. Zuckerberg didn’t have what it took to mack on chicks, much more date models. He was no smooth operator like the impish Sean Parker. He drew on his inability to socialize with other people and created the perfect tool/medium to do so — Facebook. Inside the walls of Facebook, you can look at photos, videos, and find out your one-degree of separations. You can poke, play games, trade cards or rate videos from YouTube. You can announce your marriage or tell the world you’re getting divorced in one click of a button. Twitter is somewhat of a distant competitor of Facebook’s TMI-driven luster, but it still has to find a way to make money. Facebook owns the Internet. The arrogance and self-assurance of the site were set in stone the day Zuckerberg refused to sell to Google when everyone was chanting out loud: Sell, sell, sell.
So in a world where people matter, a community of 350 million people has tremendous value to governments, media, the advertising world, consumer companies and, of course, each other. The evolution of this platform will bring about new ways of monetizing the user base without killing its core value of being fun and cool.
I watched the movie The Social Network the other day and reflected on five tips for entrepreneurs who want to use the power of SNS:
1. Social media is the best form of advertising. It is the proverbial “word of mouth.” If you’re not on Facebook, or your business does not have a Facebook page, make one. You will be missing out on the single most effective and efficient advertising medium. This is where single people are hooked. These are the same people that create fads and trends. No one has the time to woo anyone anymore really. They just have time to woo each other on FB.
2. Your Facebook can be your welcome mat for the rest of the world. Politicians have used this successfully in the US (Obama) and the Philippines (Villar and Noynoy). Create a viral campaign where your initial base of fans/supporters are motivated to invite their friends to rally behind your cause. It isn’t Multiply, it is exponential.
3. Facebook is a great way to research on other people. It allows you to see the other-more real side of people. Not the mask they put on for work, but how they are like when they let their hair down. Sun Tzu believed knowing your enemy is 90 percent of the battle. Facebook is an endless well of information. You can always use their favorite quote against them, not to mention the proverbial blackmail photos. (Please don’t do this as it is unethical. I say it in jest.) Some people actually get fired because of these photos, encouraging many to have private and public accounts. Not that life isn’t complicated already.
4. As it is a microcosm of the real world, you can spot trends and popular thinking on Facebook. What do people say about the President’s speech, are they concerned about global warming, etc. Get feedback straight from the horse’s mouth. It is empowering.
5. Network, network, network. Keep relationships alive even with people you are not able to see often. It broadens your network, and in business, your deal pipeline is only as good as your network.
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Have comments or questions? E-mail me at egtheplayer@gmail.com
