EVERYONE who operates or works in a small or medium enterprise (SME) knows networking – making contact with potential customers, suppliers, peers and even competitors – is crucial.
Until now, the main networking avenues have been social gatherings, business events and professional associations, but in the digital age, net-based social networking has taken off.
The key driver is the phenomenal growth of sites such as MySpace, Facebook and Bebo, all of which began in the US but have spread to wherever there is an internet connection.
They began as purely social websites, but the potential for business is now being recognised.
Build your profile
Properly used, social networking is a good way for a company to build a profile, especially given the huge numbers of participants.
“In Australia alone, there are nearly 2 million people signed up to Facebook, and over 3 million on MySpace,” says James Richardson, e-business consultant with Melbourne IT, a firm that specialises in online marketing for SMEs.
“The proportion of business users is still relatively small, but trends in the US suggest that growth will really take off in the next few years.”
Don’t use it to sell
Social networking is growing as a marketing tool, but the general view is that it should not be for direct selling.
A business user might, for example, talk about the goods and services their company offers, but sending unsolicited emails to everyone on the site is not appropriate.
In many cases, specific queries about sales might be directed to the company website.
Mr Richardson emphasises the focus should be on connection and communication, not selling.
“No one likes the guy who comes up to you at a luncheon and starts to pressure you,” he notes.
“Same rule here. But if you have a good story to tell, the business part is likely to follow.”
Getting started
A Facebook page is extremely easy to create: the site provides a template where the user simply fills in the blanks, and can post pictures and corporate logos.
There is no cost to the user – the companies that operate the sites make money from banner advertising. Each page has a unique URL address.
Mr Richardson explains that networking sites offer search facilities to allow participants to locate and interact with others on the basis of function, place, personality traits, business interests or demography.
Companies such as his can assist with establishing a presence on a networking site, especially if the client is unsure what information should be included.
“Most users will want to stand out a bit, and that means having a degree of customisation,” he says.
A key concept of social networking is that of “friends”, a term with a specific meaning in the online environment. Friends choose to be part of a user’s group of contacts, and lists of friends can contain hundreds or thousands of names.
Who is doing it
“To date, the business use of networking has been led by the creative and entertainment industries.
“Nightclubs, for example, have found it a very good way to reach specific groups.
“Entertainers have also seen the idea. There is a band called Arctic Monkeys that has built a very substantial following through networking, circumventing the whole process of trying to get a recording contract with a big record company.
“We are also seeing people like personal trainers getting involved, and there is a lot of potential for people like business planners and financial advisers.
“Basically, it can be used wherever there is a need to establish a relationship of trust. Businesses or organisations that have a special interest in younger people – the generation that has grown up on the net – often find networking very useful.
“In the recent election campaign, for example, we saw the major parties use networking sites specifically with younger people in mind.
“As a participant, you have to bring something to the table, whether it’s information or expertise or even a sense of humour. It has to be relevant and useful to your chosen community.”
Specialist sites
Aside from large generic sites such as Facebook, another method of social networking is sites dedicated to a specific group.
A site called Linkya – www.linkya.com.au – for example, has been created specifically for small businesses in Australia, and claims to have built a base of more than 1000 users since it began in September.
Linkya provides a basic service for free but plans to offer a premium-level membership, including enhanced search functions, next year with a monthly subscription of $9.50 to about $10.
Mr Richardson is unsure whether users will want to pay for a networking system when there are services available without charge.
“We’ll have to wait and see,” he says.
“This is an area still in the process of evolution. But one thing is for sure: it’s only going to get bigger.”
Tips for creating a network presence
– Communication is the primary focus; selling is secondary.
– Customise and define your profile.
– Offer useful, relevant information to your community of interest
Sydney Public Relations Agency, CP Communications provides specialist media, traditional and online PR strategies that get amazing results. Contact us today. For more great tips visit our website www.cpcommunications.com.au.
