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Guy Vs. Guy: Is Social Networking Good for Business?

March 3rd, 2009 @ 8:14 am

21 Comments

Categories: Guy Vs. Guy

Tags: Facebook, Network, Business, Rick, Dave, Social Networking, Online Communications, Marketing, Advertising & Promotion, Rick Broida

Welcome to Guy Vs. Guy! In this recurring feature, Rick and Dave square off on the business and technology issues of the day. Today’s topic: Social Networking. Can business users mine services like Facebook and LinkedIn for marketing gold? Or are the risks of online embarrassment too great?

Dave: Everyone around me seems obsessed with social networking these days. So much so that even I’ve started to dabble in services like Facebook, LinkedIn, and Twitter, if for no other reason than to see what all the fuss is about. To be honest, though, I’m not convinced. They seem like a lot of work and offer little to no business value. Where’s the beef?

Rick: Well, you can’t just join an “I Play Dance-Dance-Revolution When No One’s Looking” group on Facebook and expect it to improve your bottom line. There’s definitely value in social networking if you know how to leverage it. But as you said right up there in the title, there’s effort involved.

Dave: I can see the effort part of the equation. But what about the payoff? I’ve never met anyone who has ever actually gotten any business value out of a social networking app. It seems to me that these things mix too much business and pleasure. Are you comfortable linking to your boss or clients on Facebook when your cousin Wally could, out of the blue, embarrass you with some sort of risque post? Is it possible to keep your profile completely business safe?

Rick: It is indeed, as revealed in our recent post: Could Your Facebook Profile Cost You a Job? Users definitely need to be careful about what appears in their profiles and, more importantly, who’s allowed to view them. On Facebook, for instance, you can tweak the privacy settings so only your friends can poke around your profile, not the world at large. As for LinkedIn, that’s a decidedly business-oriented network, so if you’re dumb enough to put inappropriate stuff in your profile there, you deserve any ensuing calamity.

Dave: It’s true that if you decide to plunge into a social networking site, you need to take precautions to prevent it from torpedoing your career. The Web is full of cautionary stories about the dangers of social networking. You can find the occasional hand-waving vagaries about Facebook’s business potential. But, as BusinessWeek recently wrote, “[Social-networking Web sites] may provide entertainment for people with time on their hands, but have shown little ability to improve productivity, create substantial numbers of jobs, or earn a profit.” Facebook, at least, appears to be an empty shirt. So, Facebook Man, do you have any real success stories?

Rick: Well, no less than the New York Times recently scored a big win with an election-related Facebook promotion. And Business Hacks commenter Antonio Centeno, president of custom-clothier A Tailored Suit, leverages Facebook for his business, calling it “a beautiful thing.” But the obvious value in any social-networking site lies in the networking: The more people you connect with, the more you’re able to promote yourself (and/or your business). Out of work? You know what they say: It’s not what you know, it’s who. Your Facebook friends might be able to hook you up with opportunities you’d otherwise never find. This isn’t about productivity or job creation, it’s about networking!

Dave: I’m not sure that the Grey Lady’s Facebook stunt is especially relevant to any of us, but you make a good point about the value of networking. What concerns me is that it’s incredibly difficult to mix business and personal in a safe and coherent way. It’s possible to keep a python that knows how to operate a firearm in your house, but is it really worth the risk? After all, the logical marriage of social networking and job search is a site like VOIS, where “virtual outsourcing is social.” Have you seen that site? Vendors and contractors are expected to bid for jobs while listing their favorite movies and choosing from moods like “Aroused” or “Blustery.” Oh, the humanity.

Rick: That’s a perfect example of a company trying to inject social networking where it just doesn’t belong. And a perfect example of how business users should be careful where they create online profiles and what kinds of information that stuff in. A simple Google search of your name can steer employers to those profiles and all your wacky inappropriateness therein. (You’ve got it particularly rough because you have such a common name. How can an investigative employer distinguish you from the Dave Johnson who likes clubbing, Cosmopolitans, and chick-lit? Oh, wait, you are that Dave Johnson!) In any case, I agree that it can be difficult to keep personal social networking from mixing with business, but I also think anyone looking for an edge should make the effort. In these times, every little bit helps.

Dave: As usual, your debating skills are almost awesome enough to convince my grandma’s antique vase that it should have a healthy fear of heights. So far, we’ve agreed that social networking in a business context is like playing with the kind of fire that can actually fire you. And we’ve shown that taken to its logical extreme, social networking can result in a site where my business profile gets messaged by a total stranger saying that he “digs my picture.” Not unexpectedly, I win; play us out, sir.

Rick: Not unexpectedly, your lame attempts at humor don’t actually support your position. By your reasoning, no one should ever send e-mail, either, lest it fall into the wrong hands. If you’re smart about social networking, it can be a killer marketing tool. If you’re careless and foolish, it can have disastrous results. The same is true of e-mail, voice mail, instant messaging, Twitter — shall I go on? Anyway, you can rest assured: No one who sees your picture is ever going to “dig” it.

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  •  
    1

    Cicero01

    03/03/09 | Report as spam

    RE: Guy Vs. Guy: Is Social Networking Good for Business?

  •  
    2

    BizHacksRick

    03/03/09 | Report as spam

    RE: Guy Vs. Guy: Is Social Networking Good for Business?

    Well put. wink

  •  
    3

    bbeckley

    03/03/09 | Report as spam

    RE: Guy Vs. Guy: Is Social Networking Good for Business?

    I've grown tired of all the fads, and in the end, social networking for marketing is going to be just another fad. Here's an idea...actually talk to your customers instead of talking at them! Stop crunching analytics data and believing that your customers actually give a flying flip what you are doing every 5 seconds (Twitter).

    It comes down to this...we want to globalize our market, and in doing so, we forget the names of the people who got us where we are in the first place. Social Networking DEPERSONALIZES everything. I get more results out of a phone call to a good customer and 15 minutes of my time, than 40 hours of work on Facebook and LinkedIn setting up my network or my tribe, or whatever the latest jargon is.

    I guess I see this all as pure laziness. The more we automate, the more we depersonalize the message. Maybe, a shift back to truly personal contact is exactly what marketers need to do. Wouldn't that count as something extraordinary these days?

  •  
    4

    paul@...

    03/03/09 | Report as spam

    RE: Guy Vs. Guy: Is Social Networking Good for Business?

    Social networking is more social than networking. I don't know who coined the phrase "social networking," but a more appropriate phrase would be "online socializing." Networking should refer to the hardware, not the soft people skills.

    Good for business? Probably won't help the bottom line.

    Good for self? If you have friends who spend the day in front of a computer--then probably yes.

    Is it a skill anyone who uses a computer should have? Yes.

  •  
    5

    rdefazio

    03/03/09 | Report as spam

    RE: Guy Vs. Guy: Is Social Networking Good for Business?

    bbeckley, you have got it right. I work at a web programmer, and I can tell you readily that the returns on time investments in site like FaceBook, LinkedIn, and Twitter are better spent elsewhere. Business "social" networking sites don't yield reliably tangible business because the sites' memberships are populated by those want to watch someone play tennis rather than to play the game themselves. Real business requires two parties to a transaction to make a commitment of time, resources, and cash, something that LinkedIn doesn't, hence the lack of a reliable stream of business.

    My suggestion to those tempted to explore the potential benefits of these sites and others as possible alternatives to the hard work of actually talking with and meeting real people who spend real money for real services and goods is quite simply, "Don't waste your time. It's the only commodity in your life for which you cannot get a refund if you are dissatisfied with the results."

  •  
    6

    alex@...

    03/04/09 | Report as spam

    RE: Guy Vs. Guy: Is Social Networking Good for Business?

    Well put bbeckley in reply 3.

    The problem is that people think that because the tool has changed, the message has done likewise.

    That's why we hear all sorts of dribble about something called Sales 2

    Sales is Sales and as there has never been a Sales 1 , it beats me how you can have a sales 2

    Sales is all about hitting your numbers by enabling your customers to get what they want, and doing it in a professional honest manner.

    Yes some modern tools will help you along the road, and social networking tools may help some.

    But when it comes to doing and having mechanisms in place to do business you can't beat the time tested methods of good copy, value propositions and physically talking to people.

  •  
    7

    tapisrouge

    03/04/09 | Report as spam

    RE: Guy Vs. Guy: Is Social Networking Good for Business?

    ""Don't waste your time. It's the only commodity in your life for which you cannot get a refund if you are dissatisfied with the results."

    * Brillant reply. Good to have that in mind.

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    8

    vampirekwc

    03/04/09 | Report as spam

    RE: Guy Vs. Guy: Is Social Networking Good for Business?

    I keep hearing people say how Web 2.0 and Social Networking can be leveraged for professional and educational reasons. But no one ever really offers a concrete example of how people/companies are ACTUALLY using them for these reasons.

    The New York Times, a company that specializes in getting the word out, used Facebook to get the word out about the highest profile election ever? Not really all that impressive a feat.

    And this Antonio Centeno guy says he uses Facebook for business, but never says how. Rick, if you want people to take your words seriously, you need to follow the basic journalistic tennets of verifying stories and specifiying details. "Oh, this guy says he does it, so it must work" is not helpful to anyone looking into Social Networking as a business tool.

    How would a bookseller use Facebook to improve business? How about a doctor or lawyer? What about all the secretaries and administrative employees out there...how could they use Facebook to improve their careers (outside of the obvious "hey friends, I need a job" announcement)? Begging your friends to hire you or buy your merchandise is a far cry from networking and highly unlikely to lead to long-term business growth.

    Until we start seeing an appreciable number of success stories from various business sectors, I can only assume that the rare few who cash in on Facebook et. al., are either overly savvy or just lucky.

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    9

    llshatkin

    03/04/09 | Report as spam

    RE: Guy Vs. Guy: Is Social Networking Good for Business?

    I read this interview and all the comments and I wonder why everyone is so focused on the mainstream Facebook and LinkedIn as model social networks? Granted, they are wildly popular and set a broad example of how to get a bunch of opt-in people engaged in conversation and eventually, some sense of community.

    My take away from all of this is conceptual. I consult on how to leverage the technology and application of social networking to a proprietary business. I agree that these public networks can't do a whole lot of good for a company's business (ie bottom line) and may even pose risks.
    But, the underlying concept is what works for business, successfully. I consult on building social networks and communities in a closed, opt-in, invite only environment, like Dell does. This is the way to successfully take advantage of the models set by Facebook and LinkedIn, generate better communications across a firm and better outreach/engagement with a customer base.
    Ask any questions and I will better explain...

  •  
    10

    bouchec1

    03/04/09 | Report as spam

    RE: Guy Vs. Guy: Is Social Networking Good for Business?

    This article shoulda been written in 2007.

  •  
    11

    the limority report

    03/04/09 | Report as spam

    RE: Guy Vs. Guy: Is Social Networking Good for Business?

    social networking sites make about as much sense to me as convincing "grandma?s antique vase that it should have a healthy fear of heights."
    all in all, they are a time-suck --- time that could be much better spent elsewhere to boost business.

  •  
    12

    soft.flame

    03/04/09 | Report as spam

    RE: Guy Vs. Guy: Is Social Networking Good for Business?

    I have benefited from using Facebook to launch my freelance career and gained income as a website designer and also pursue alternatives in deciding what job I would like to do for 9 to 5. Being able to keep in touch with friends and professional acquaintances help with generating better contacts.

    Many businesses in my country have benefited from the use of Facebook, in that is has enabled them to reach out to more audiences.

    Social networking sites, like many other things, are just tools. What you do with the tools is what matters. Too bad that so many people are too cynical in saying that it's a waste of time.

  •  
    13

    BizHacksRick

    03/05/09 | Report as spam

    RE: Guy Vs. Guy: Is Social Networking Good for Business?

    @soft.flame: I agree. I'm surprised by all the negativity towards social-networking sites. Personally, I've reconnected with lots of former editors on LinkedIn, and while it hasn't led to any extra work (yet), at least it's keeping my name in front of them.

    Remember, folks, it's the *networking* aspects of social-networking that can be valuable. Like I said in the post, it's know what you know, it's who. Sites like Facebook open the door to a *lot* more "who."

  •  
    14

    BizHacks Dave

    03/05/09 | Report as spam

    RE: Guy Vs. Guy: Is Social Networking Good for Business?

    That's the difference between you and me, Rick. You *want* to network. But for me, people? They're the worst. Just give me a PC and my Beatles collection and drop me off on a deserted, Wi-Fi enabled island.

  •  
    15

    BizHacksRick

    03/05/09 | Report as spam

    RE: Guy Vs. Guy: Is Social Networking Good for Business?

    @BizHacksDave: What, no Halle Berry? Usually your deserted-island fantasies involve some aging starlet of questionable beauty. Anyway, yes, I'm alllll about the networking. But at least the social sites don't require any face-to-face interaction [shudder]. Who'd want THAT?

  •  
    16

    Had Enough

    03/09/09 | Report as spam

    Was called life but then they Twittered into Life 3.0

    You know then that when your present life gets you down, you can always blindly follow the celebs and change to Life 3.0

    Extensive surveys by the manufacturers of Life 3.0 suggest that more social interaction using Mouth v38.9, Vocal Chord v1.01, Tonsils Lite, Lips 3.0, Lungs Airexity (tm) with a mix of either Skype, Standard Landline, mobile/cellphone with or without Hand or Headset as desired, may lead to a more fulfilling and happy state of being.

    They also actually prescribe what in the old days was called, "face to face" contact or "eyeballing" that required a human to be transported from their domicile or place of work to be in close proximity to another human who also had to be transported to the agreed location too.

    And provided a social interaction occurred mainly comprised of 'speech' between the attendees, the 'gathering' was described as 'pleasant' and in this manner of interaction and communication, you would attain a level of benevolence and spiritual wellbeing not known previously.

    Back in those days we called Life and Business, this event was known as 'talking' and 'meeting' and thus 'bonding' with each other. Or maybe not. But it was regarded highly as the premier method of engaging with fellow human beings.

    Such is Life as many of us will recall it. And if you cannot go and meet someone for a coffee you will have the option of Life 3.0 to fall back on. It's a shame really that we revert to social networking online via Twitter, FB, or whichever Social Network is temporarily the current rage.

    Talking, eyeballing and touching was such fun back when Life was indeed simply about life.

  •  
    17

    vcapels

    03/11/09 | Report as spam

    RE: Guy Vs. Guy: Is Social Networking Good for Business?

    I think it's worth doing, especially if your business is a non-profit or promoting a certain cause. It is yet another way to build exposure and send out updates to folks. And it's FREE. For example, some of my "Friends" on FB saw that I became a fan of a particular obscure magazine they had not heard of and, after checking it out, they became fans, too! This magazine is appealing for financial support in order to remain ad-free; I bet it will reap some new subscribers as a result.

  •  
    18

    allensood

    04/07/09 | Report as spam

    RE: Guy Vs. Guy: Is Social Networking Good for Business?

    yah it can help you to know the new trends and technology.......

  •  
    19

    jeffbetts

    05/15/09 | Report as spam

    RE: Guy Vs. Guy: Is Social Networking Good for Business?

    I agree with @BizHacksRick and Soft.Flame.

    "Social networking sites, like many other things, are just tools. What you do with the tools is what matters."

    You can build very useful things with a hammer and nails (tools) if you have a plan and ability to execute it. These same tools in the hands of someone who doesn't understand their functionality can cause significant injury to ones self and/or others.

    @jeffbetts

  •  
    20

    tgeerts

    06/04/09 | Report as spam

    RE: Guy Vs. Guy: Is Social Networking Good for Business?

    Hi All, don't forget the different ages and various target
    group(s). I recently attended a very interesting seminar
    called 'Generation C'. which was all about different
    communication habits from Generation C, X & Y. C is born
    digital with internet and mobile communications and they
    'hang out' in online communities like hyves, myspace,
    facebook, msn, and textchat/sms/twitter all day. For them,
    being online together is their way of social group
    interaction. While I still e-mail a lot, Generation C twitters
    and feels that e-mail is way too 'unpersonal'. (Future)
    brands can only be succesful if they understand the
    changing demands, social trends and communication
    protocols of their target group(s). That's why it's very
    important for brands to continue to experiment and innovate
    with new social concepts, relevant content formats and new
    technologies in order to continue to stand out, make a
    difference and enrich and 'connect' with their online 'brand
    friends'. happy Cheers, T.Geerts / Design Director @ Qi-
    ideas.com

  •  
    21

    eanalyst

    07/20/09 | Report as spam

    RE: Guy Vs. Guy: Is Social Networking Good for Business?

    I agree with the majority of posters on this discussion; until now social networks have lacked much true utility. Sites like Facebook, LinkedIn, and Myspace may have an immense market share, but without any useful toolsets, their business application is remarkably limited. However, this does not condemn social networking sites to frivolousness for perpetuity.
    I just recently ran into a press release about a free social networking site that holds some promise: http://www.forbes.com/feeds/businesswire/2009/07/17/businesswire126835474.html. It?s called Vreebit.com, and it looks like it will actually serve a business purpose! Some of its most enticing features include group role delegation and assignment, task and project management, and selective calendar sharing. Probably its most powerful feature (from the description offered) is an intuitive, highly granular security control - an absolute necessity in any serious business application. I?m looking forward to their launch in the next couple weeks, and hope this site addresses many of the problems plaguing modern social networking platforms.

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