Social networking: The importance to business

Social networking isn't restricted to personal use. Instead, it is also a valuable business tool, and it's becoming increasingly important for entrepreneurs and businesses of all sizes to make use of the social networking tools at their disposal.

The problem is the benefits from engaging in social networking are often intangible. While I've spoken to a handful of people that have found net new business through LinkedIn and one person who got job interviews as a result of Twitter posts, it seems that for the most part, social networking is a place for business to sink time and money.

However, the benefits of social networking come from the exposure you can get from simply being there and being active. LinkedIn was developed to be an online business networking tool. Facebook has groups and fan pages that you can use to market your business. And Twitter offers interested people a way to get your news and views in a timely fashion.

There are two dangers I want to focus on related to social networking, though.

The dead zone
A tool that isn't being used isn't really much of a tool. While it's okay for your hammer or screwdriver to sit around until they're needed, it's not okay to ignore your social networking initiatives. A stagnant Twitter feed is a dead Twitter feed, and a Facebook page that hasn't been updated in several months might as well not even exist.

Businesses that jump into the social networking world need to make sure they have someone who is managing it effectively.

Spewing garbage into the ether
There's the difference between a personal touch and too much information. The former is good, and the latter will create a social networking disaster. Understand there's a fine line between being personable and telling others too much about your personal life in a public forum.

Stay professional. Now, that may mean different things to different people, but if you find yourself tweeting from the urinal in your local bar, you're probably going way too far.

The end result
While I use LinkedIn for keeping track of my network of professional contacts, I have not yet found its true value in generating new business (but others will surely tell you it's there). I've had suggestions for developing new business, but my LinkedIn efforts have not yet generated new business.

Twitter, on the other hand, I see as a valuable marketing tool. While I can't prove that it's driving traffic or potential clients to me, my suspicion is that it will eventually yield results. Time will tell if it really happens.