Amid all the hype about social networking, one wonders: How can sites such as Facebook, Linkedin or college alumni boards help market your business?

Smart startups can benefit greatly from social networking. A business that has, for example, a well-received product on social networks can ascend in the ranks while larger companies, which may have bigger marketing budgets but subpar products, can easily sink.

Social networking can also help you build a group of loyal customers, reconnect with valuable contacts, and become more interactive with your audience.

To maximize your social networking strategy, consider the following questions:

1. Do you know your audience? Would they use sites like Facebook or Linkedin?
2. Will such sites help or hinder your business’ credibility?
3. Will it provide value to your business?

If the answer to all three questions is yes, then your business can’t go wrong by joining Facebook, or connecting with people on Linkedin. If, however, your demographic is older or not quite as online savvy, then you should focus your marketing efforts and money elsewhere before wasting your time online.

Two more words of caution about social networking sites: Be sure to use these sites as a way to create connections and build relationships. Many businesses slap a profile online without really utilizing it. In my opinion, Linkedin does a more effective job at business networking than Facebook or any other site.

Finally, before you join a site, learn the rules of online etiquette. The biggest mistake businesses make is that they get online and try to sell, sell, sell. Instead of pitching, you should be engaging your audience.

Whatever you decide, happy networking! We’d love to hear about your experiences.

This entry was posted on Friday, May 23rd, 2008 at 2:35 pm and is filed under Business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.