By Minda Zetlin
Now
that business people have migrated onto such social networking sites
and amassed a dizzying array of contacts -- and contacts' contacts --
how do you convert some into clients?
Not
long ago, Anthony Russo was paging through the Q&A section of
LinkedIn, where members pose questions on a wide variety of topics.
“Someone asked how to manage a sales force spread among three different
countries,” he recalls.
Russo is an account executive at Great America Network Conferencing,
which provides both teleconferencing and Web conferencing services that
can keep a geographically dispersed group working as a unified team. “I
provided information on how Web conferencing can help,” he says.
Will his answer lead to a sale? It just might. For the past six months, Russo has used LinkedIn,
primarily by answering other users’ questions, to find new customers.
“So far, I’ve closed four sales, found a contact that led to another
sale, and I have three or four in the works that may turn into sales,”
he says. When it comes to generating his own leads, he adds, “LinkedIn
is how I make most of my contacts.”
For many small and mid-size businesses like Great
America Network, social networking sites are a great way to build a
customer base, if you know how to use them effectively. These are
dizzyingly varied, from < ASmallWorld (a 150,000-person invitation-only network for the very wealthy), to huge general-interest networks such as MySpace and Facebook, to business sites such as Xing and Inc.’s newly launched small business networking siteIncBizNet, to dedicated sites such as Sermo,
open only to physicians. Any of these may be the best site for you,
depending on your particular product and goals. LinkedIn, with 14
million users and a definite focus on business, is often a good first
stop if you’re looking to increase your customer base.
Getting the Most Out of Your Network
For most social networks, the signup process is
fairly straightforward. Once they’ve signed up, though, many users are
baffled as to how to turn their social network membership into a means
of generating sales. If you’re wondering the same thing, here are some
strategies that can help.
1. Get at least 65 contacts. “With 65 contacts, you’ll really start seeing the power of social networking,” says Jason Alba, author of the newly published I'm on LinkedIn -- Now What??? A Guide to Getting the Most Out of LinkedIn
(Happy About). Some sites have built-in ways to help you increase your
contacts, allowing you to search for former classmates or co-workers.
Another strategy is to issue invitations to business contacts and other
acquaintances as you meet them. This may seem unnecessary -- after all,
you already know them. “But you don’t know who they might have in their
network,” Alba says.
2. Make your contacts as diverse as possible.
If most of your 65 contacts work at the same company, or in the same
tight-knit industry as you, you may already know most of the people
they do. So, though it’s counterintuitive, adding contacts who are
outside your industry or usual circle of acquaintances can be more
powerful than adding contacts inside your industry.
3. Offer good information. If, for
instance, Russo were to post “Do you know anyone who’s interested in
purchasing Web conferencing?” not only would he receive few answers,
his question would probably be flagged as inappropriate by several
other members, leading to automatic removal.
Likewise, when responding to questions, he says,
“I answer with all kinds of information. If every answer I gave was
about Web conferencing, I might lose credibility.”
4. Focus on creating a real-life relationship.
When Jason Alba finds that one of his social networking connections
knows someone he’d like to reach, he will usually pick up the phone and
call his contact. “Social networks are not a way to replace
relationships,” he says. “When you can, step outside the technology and
talk on the phone, or face to face.”
Sometimes, social networking is most effective as
the last step in the lead-hunting process. “Social networking is
useful, but only as part of the process,” explains Barbara Finer, who
recently left a small consulting firm to become director of product
marketing for the small and mid-size business sector at 3Com. “First,
I'd use other sources to learn of companies I would target for my
services. Then I’d look to see who in my network might know someone,”
Remember, Alba adds, “Relationship development
does not happen because of a Web site. “It won’t find your leads for
you, and it won’t close deals. Social networking is a tool; it’s not a
silver bullet.”
http://www.ganconference.com
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