Wednesday, October 8, 2008

Businesses Can’t Ignore Social Media Networks Anymore

Social networks will play a larger and larger role in the way businesses find and attract customers as well as talent for their companies, as well as their corporate image.

Social networks aren’t just a fad. Hardly, in fact, they are starting become crucial for doing business. Soon, every company will have to work with the winning social network firm or firms, just as almost all companies work with Yahoo and Google.

LinkedIn is already profitable. Yes it’s making money! Three months ago or so, they had a $53 million cash infusion on a $1 billion valuation. You look at that company and ask how it’s worth $1 billion. First of all, there are people willing to use InMails—that’s their biggest product. They sell seats to the full network—they have 27 million users. Golly gee that’s a lot of users to promote to. Facebook is by far the most popular with the greatest market share of all the SM sites.

To be competitive in the marketplace, every company, yes every, will have to look to the market for customers, which is going to be found through LinkedIn, Facebook, Ning or some combination of these sites. To be competitive in the marketplace, every company, yes every company will have to look to the market for talent, in much the same way.

Every company will face and is already interacting with, whether they know it or not—three phenomena of the social Web: a market for customers, a market for talent and a market for their reputation. They can ignore it if they want, but it’s kind of silly, when it is right at there desktops.

Every company needs a pressroom. A why to speak out and be heard. Social media sites are the reporters to the world. Your company is going to be reported on, and if you want to be part of that discussion, if you want to tell your story the way you see it and not the way an unforgiving cyber world might spin you had better be out there. Online speaking out!

For organizations where SM is part of the production function (like mine), part of the core activities, it’s the CIO’s responsibility to be on top of this, to be knowledgeable and understand it architecturally. He or she has to know, in enough detail, the relationship between architecture, innovation and strategy.

It’s a big deal, strategically. It’s a huge deal in positioning. Even if they, the Owner or CIO don’t want the responsibility of running social media; they need to have an opinion about it. They need to understand it and how it will, yes will, move and push their company.

Larson note: Its coming we are seeing the hits all over the place. Big, small, social media will continue be a main stay of multilevel but will be moved over a bit as traditional businesses get more and more involved, and put some corporate muscle into it. SM is still and will continue to be for those people and companies that can be hands on and have careful monitoring of their company and its brand. That can put in the time element into it. But it is going main stream

Howard Larson
Larson & Associates
Telesales & Target Marketing Professionals for new account acquisition
Making good businesses great and great businesses even better

No comments: