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Business value of Social Media part 1: online networking
reprinted with permission from the HP Small Business Center

If you could connect to the world's business professionals, in the time it takes to check your email, wouldn't you? Welcome to the world of online networking, where valuable business connections are made every day on social and professional networking sites like Twitter, Facebook and Linkedin.

Social and professional networking simply refers to the interaction between a community of people who share a common interest. Through these personal connections you make with an otherwise impersonal medium, you can give your business a personality, build brand awareness, and equally importantly, tune in to what people are saying about you.

The ability to create your own online networks through sites like Ning, has made it difficult to distinguish which online communities will help you reach your business goals. We did the leg work for you, by exploring the difference between social and professional networking and the business value of both, analyzing which sites work best, and providing tips to help you make the most of the free networking resources that already exist.

Social or Professional: What's the difference?
There are two types of networking—social and professional. The differences are in their purposes and the way you interact with your community through these sites.

Social networking is about strengthening existing relationships, connectedness, entertainment, and creating a sense of belonging. Sites like Facebook, MySpace, and Bebo, the latter two of which cater to younger audiences, are popular social networking sites.
Professional networking is also about strengthening existing relationships, but it's more about new relationship development, positioning yourself as a thought-leader, learning, and creating new personal and organizational business opportunities. The most common professional networking sites are Linkedin and Twitter (which can also fall under the social category).

Although professional networking may benefit your business more clearly, both are valuable if they're done right.

Why network online?
It's simple—Networking online is convenient, allows you to reach a broader audience, and best of all . . . most sites are free!

It's too easy not to: There are no hands to shake, or events to organize or attend (in person), just content to post, read and comment on, Twitter "tweets" to post and reply to, and business professionals to connect with. Essentially, you can help get your message out to a global audience, without ever leaving your desk.
Broaden your reach, expand your business: Online networking lets you speak directly to those you might never have been able to reach. By joining active communities, you can build relationships and promote your products, services and expertise, getting your name out to a much wider audience. By putting keywords in your profile and searching in directories for those with an interest in your product or service, you can not only get your name out to a broader audience, you can get it out to the RIGHT audience; think of online networking as a supplement to your rolodex.
Low risk, big benefits: To benefit from sites like Twitter, Linkedin and Facebook, you don't need a big marketing budget. All you really need is time—to investigate sites, to create and monitor content, track traffic and referrals, and keep your profiles, groups and other pages up to date. If your content is relevant, others can help you out by re-posting what you're saying and promoting your content on sites like Digg, whose purpose is to uncover the best online content and bury the worst.

Not matter how big or small, your business can benefit from online networking. Just look at what these travel companies have both done through the use of social media. Read the case study.

Which sites are most beneficial to business?
With so many networking and business directory sites out there, it's best to start networking with the most developed and user-friendly sites. We are going to focus on three which are well-known and popular today: Twitter, Facebook, and Linkedin. These sites may or may not be familiar to you, but they all have one thing in common—they can be a new area of growth for your organization.

Linkedin: As stated on their website, Linkedin's mission is to connect the world's professionals to accelerate their success. When you join, you create a profile that sums up your professional accomplishments and lets you be found by present and former colleagues, clients, and partners. Operating on the belief that the most meaningful business connections are made through the business connections you already have, Linkedin seeks to introduce you to business professionals through 1st, 2nd, and 3rd degree connections and so on.

The demographics speak for themselves. With over 30 million users, the average Linkedin user is 42 and makes $100,000 + yearly. 80% are college educated, while over 50% are the decision makers or influencers of a company. Linkedin gives you the ability to reach people you can both learn from and connect with for new business partnerships, jobs, and other opportunities.

Twitter: Although Twitter only bounded onto the social media scene in March of 2006, by September 2008, this micro-blogging service had grown to over 5 million members worldwide. Twitter allows you to post "tweets," or short messages no longer than 140 characters, from your PC, phone, or other mobile device. Those who follow your communications can then respond in real time, ultimately allowing you to start mini-conversations with someone right down the street, or across the globe. All you have to do is find the users who are posting relevant content and follow their communications.

Facebook: Starting out as a way for college students to connect, Facebook is now open to everyone. By far, the most popular of these three sites, with over 150 million users in 170 countries, Facebook is primarily a social networking site. But, with the introduction of fan pages and targeted advertising, Facebook has become more valuable for business.

The concept of a fan page is simple. You can create a page, which is essentially a profile for your business, which people can then become a fan of through their personal profiles. Admins, or page managers, can keep members updated by starting conversations through open discussions, posting links to relevant content, and updating their news and upcoming events sections. If you already have a Facebook profile, you can create a page for your company here.

Steady does it
Social media is important to the advancement of your business, but it can also be somewhat daunting, as it may seem like you don't see results right away. When it comes down to it, is there a wrong way to network? Not really, but there is a right way that will make it easier for you to make connections that are reciprocally beneficial.

Online networking tips
Build your network: Not sure how to go about doing this? Start with the people you actually know, see who their connections are, and go from there. If you're looking to build your Twitter network, Twellow, an online directory, lets you search by keywords, location, and name, helping you find those in fields relevant to yours. More info on building your Twitter network can be found in this article from Marketing Sherpa.

Be active: When you have a business related question, reach out to your network and answer their questions in return. Recommend colleagues on Linkedin. Update your profiles or groups with recent news. Start discussions on topics that are specific to what you do. Social and professional networking is based on the method of give and take. Your efforts to connect with others will determine what you get in return.

Post relevant content: "Relevant content" is the type of content that adds value to your online community. To keep your network growing, the content you post should be applicable to your business and the interests of those in your community. This Twitter Haiku illustrates why you should post relevant content.

Tweet what matters most/because we really don't care/what you ate for lunch.

Update frequently: Remind people as often as you can that you have significant information, products, and services to give.

Listen: According to a study by Jack Morton Worldwide, 53% of consumers studied said that word of mouth is still their biggest influence when making a purchasing decision. It is your responsibility as a business owner, professional, or influencer, to know what people are saying about your company, good or bad.

Grow your network, grow your business
For an even deeper dive into the online networking world and how you can benefit, check out these free online HP social networking classes. Through online networking, and perfecting the art of blogging, which we'll explore in part II of this article, the possibilities of who you can meet and how you can benefit each other are limitless. It's no longer a question of whether you should embrace social media. It's now a question of what business opportunities can be found by doing so.