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Online Social Networking

Introduction:

Online social networks have become more than just a fad in the Web 2.0 world. They've become a part of everyday life for millions of users. Chances are you're familiar with MySpace and Facebook, and you may already have an account set up. But what you may not realize is that many companies have recently tapped into this new territory, finding it an especially helpful tool to grow their businesses. When used correctly, social networking sites can help you acquire new customers, and grow and reward existing customer relationships.

Definition:

Social networks are primarily Web-based applications allowing a community of online users to interact with each other via chat, blog, video, pictures, email, and more.

Explanation:

Online social networking began in the mid-to-late nineties with Web sites like Classmates.com and SixDegrees.com. The most popular social networking Web sites today are MySpace, with over 200 million accounts, and Facebook with over 42 million accounts.

Companies can use social networking to grow their businesses several ways.

  • Profile | A corporate profile allows companies to showcase their skills and share knowledge and resources with other users in the online community.
  • Networking | The community setting provides great opportunity for expanding your contact base and building relationships with clients and employees. It even holds global potential.
  • Marketing | Users typically create profiles of themselves listing a variety of demographics, a feature which appeals to companies seeking to zero in on a particular demographic for marketing purposes. When used appropriately, companies may even take advantage of advertising opportunities within certain social networks.

The Reason:

Dale Carnegie, author of How to Win Friends and Influence People, became well-known for a simple philosophy-the key to successful marketing is reaching people where they are and giving them what they want. People are using social networking sites and want the transparency achieved through social networking interactions and conversations.

The Solution:

It's easy to start growing your business through social networking sites. The best place to start is to simply open an account with MySpace and/or Facebook. You can open a personal one as well as a corporate one. Just remember-the key to online social interaction is transparency. You can also use Ning to create your own custom online social network.

Just like you've learned the rules of face-to-face social networking with business cards and briefcase in hand, you'll need to learn the rules of online social networking culture. Next month's wire article will provide some tips and protocol for social networking as a business development tool.

Additional Reading:

Business Week Article