The benefits of social networks apply to both business to consumer and business to business models, as well as to individual executives
within those organizations. Both types of companies can use social networks to recruit talent, build reputation, identify new customers, connect more meaningfully with existing customers, respond to service issues, develop an effective communication channel with the press and the public.  For business to business organizations,  social networks provide a platform to position a company as a resource and thought leader in its respective industry. This can be accomplished by sharing
assets such as whitepapers and other industry insight. Essentially, a business can derive similar value through social networks as they can through participating in a conference.

Executives can use social networks as professional development resources. Follow subject matter experts on Twitter to benefit from articles and opinions even before they are written in trade publications. Pay attention to status updates in Facebook and LinkedIn to gain perspective into what colleagues are thinking.  Participating in social networks provides even greater opportunities. These include generating new business, speaking engagements, interviews with reporters and personal branding as a subject matter expert.

Of all the compelling reasons to be on social networks, I believe the most compelling is enhancement. Executives make mistakes assuming
social networking is an end, rather than a means to end. Here’s what I mean. If you are an executive whose sales strategy involves learning
about a new industry, a social network will provide unique insights. If you are a seasoned executive looking for speaking engagements, there are many ways to use social networks to achieve this end. My advice to you is to articulate the goals you wish to achieve for yourself and your business first and then determine which social
networks and what strategies and tactics will enable you to realize them.

Here are 5 articles I’ve found useful in demonstrating the power of social networks and social media:

•    Forbes: Yes, CEOs Should Facebook and Twitter. The importance of CEO’s and companies participating in business, new media requires a different way to do business.

•    WSJ.com: The Art of Making Online ‘Friends.’ Builds a strong case for building up your social networks, including your “weak ties.”

•    BusinessWeek: Social Networking 101 For Businesses. Businesses need to embrace social networking as a part of doing business.

•    NYTimes: I’m So Totally, Digitally Close to You. Article centers around the relationships people form through social networks such as Twitter and Facebook. It centers around the concept of “ambient awareness” which helps explain the appeal of constant updates from these social networks.

•    BusinessWeek: Are Social Networking Sites Useful for Business? To get the most out of social networking sites, small companies should set concrete business goals, then start experimenting.

( by corresponding shapes on Flickr)

When I tweet, cool stuff happens. I call it Twitter serendipity.

I’ll discuss a band on twitter, a few minutes later friends on twitter reply with links to songs I’ve never heard from that band. A few months ago, I helped a new twitter friend find a good deal on a hotel room in NYC. Turns out he’s the VP of a company I’d like to work with. Today, a prominent blogger discovered a tweet I wrote a few months back about wanting to represent bloggers — not just their media but their full offering as brands — to companies. That blogger who emailed me had perfect timing. I am in the process of building that model right now.

When I tweet, cool stuff happens.

I discover articles and events. And most importantly, I discover people.
Businesses often ask about the ROI of twitter. And while there are many ways to answer that question, that most elusive and compelling benefit of twitter is the relationships you create.  So, what’s the ROI of a relationship?

(Image: sharapova tennis return 0874 by *etoile on Flickr)

The next time you are asked about the ROI of social media, I’d like you to try something. Ask the person asking you that question what type of return is valuable to them. If the “R” they are measuring is revenue, ask what contributes to revenue. Which products are they trying to sell? Who are their sales people calling on? What information would help them better understand the client and the marketplace? Then show how social media can introduce those products to people who care about them, or can start a conversation that engages those people. If sales depends on the perception of the company, or involves knowing information that the competition does not, show how social media can change perceptions and unearth important, actionable insights.

If the person asking you this question does not measure return as revenue, but rather looks at some other metric: placed stories in PR, the ability to recruit talented employees, as a means to retain employees, as a way of engaging existing clients, then demonstrate how social media can achieve these benefits.

The ROI of social media starts by defining return.

After the return is defined, then connect the best social media tools to achieve it.
Here are a few relevant articles on this topic:

How to Measure Social Media ROI for Business

What is the ROI for Social Media

Social Media ROI—What’s the ‘Return on Ignoring’?

(Packed House at SMB10 by Bob Collins on Flickr)

The theme of Social Media Breakfast Boston 10 was “ Getting ROI Out of Social Media.”
HubSpot’s CEO Brian Halligan discussed their method for measuring how social media conversations translate into sales.
Marketers at the event suggested that hiring good content people is a more attractive alternative than buying advertising.
Matt Cutler, Vice President, Marketing & Analytics at Visible Measures, presented on the ROI of viral video.
Visible Measures has powerful tools for measuring viral impact, a database of millions of videos and criteria to evaluate what makes videos “go viral.”
Matt drew a comparison to how much Nike would have had to spend on TV commercials to create the same impact that one of their viral videos had (with 16M views).

He calculated that broadcast TV CPMs are apx. $25 and online video CPMs are apx. $50-75, and he created an estimate.
His formula needs to add one critical consideration: context.
Watching a viral video forwarded to me by a friend, posted in a favorite blog or on a social network is worth much more than a tv spot that interrupts my show.

A RSS reader is a sales person’s secret weapon. This blog post explains what an RSS reader is and how it will enhance your sales process. The RSS reader makes it easier to gain market and competitive insights and become a resource to your clients.

Step 1 – How RSS works.
This 3:44 minute video explains the basics.

Step 2 – Select your Reader.
I recommend Bloglines for salespeople. I created a “How to use Bloglines” guide here:

How to Use Bloglines

View SlideShare presentation or Upload your own. (tags: guide bloglines)

Step 3 – Get Great Content.
Visit Alltop to find niche blogs. Subscribe directly to newspapers and websites you frequently visit.

Step 4 – Customize your Content.
Go to Google News, enter a search term and click “Search News”. Use your reader to subscribe to that search term to receive constant updates sent directly to your reader.

Step 5 – Get Newsletters.
Bloglines will give you your own email address to use when signing up for newsletters. You can sign up for your competitors’ newsletters too.

Step 6 – Folder like a Pro.
Group your feeds together in folders named for how you will use the information. For example, call one folder, “Read to understand
my market,” and another folder, “Read to prepare for a sales meeting”.

Step 7 – Build a sales resource library.
Clip and save your articles to folders. Name each folder according to step 6. When you are preparing for a sales meeting, use your clippings to provide value to your clients.