The Value of Online Social Media

I have been doing a lot of thinking on the value of online social media.  It is clear that we are still early in the game.  In fact, the game seems to be changing on a monthly basis as new tools are invented and old ones are discarded regularly.

Social Media Tools that I currently use daily include Twitter, Facebook, Wordpress, Youtube, and mySpace.  I also use LinkedIn, StumbleUpon, and Digg with less frequency.  I tend to find value in the connections I make with people, which, so far, have not led to any direct or indirect monetary rewards.  I play chess with old and new friends on Facebook, I share music on mySpace, and I gain a lot of knowledge from other people on Twitter.  And I use Youtube to build awareness of my band.

I have been talking with clients and friends a lot about the prospect of utilizing these tools to make money.  “How do we do it?”  “Is it possible?”  That sort of thing.  Put simply – Can online social media be used to sell stuff?

In my experience, the selling of stuff using online social media is really dependent on timing.  For example, I play in a band that wanted to print t-shirts.  It just so happened that a t-shirt manufacturer emailed me on mySpace at the moment that I was looking for t-shirts.  He got my business not because he was necessarily the best, but rather because he happened to be there.  And buying t-shirts isn’t something I am all that interested in.  Put simply, he made it easy for me.  I didn’t have to shop around (or didn’t want to), and he conversed with me one-on-one via email until all the details were settled.

So, when business owners ask me how online social media can be valuable to their bottom line, my experience tells me that building an online social presence is a lot like placing ads on public tv or radio.  You don’t necessarily announce that you have a sale or a discount; rather, you are just there.  And, hopefully, you are there when people are looking to buy whatever it is that you sell. 

ADDED ON 9/29/2008: Further reading [Thanks, @CalGreg!].