The Cost (and Payoff) of Investing in Social Media

Colvin believes blogging takes disseminating information about a company a step beyond formal press releases, ads, marketing brochures and Web sites. "That is where the magic happens in social media. A well-managed blog invites peoples' perspectives and provides an opening for real relationships to be formed which is a critical aspect of great customer service, and a good user experience. It can be a stepping stone to brand attachment," she says.

That attachment doesn't have to equal a huge time commitment, but expect to spend an hour or two to knock out a post. The rewards are immediate: Blogs that are refreshed regularly get a boost in search engine rankings. "It also helps to establish you as an authority," says Blanchard who suggests writing during evenings or on weekends to maximize regular working hours.

Twitter: To Tweet or Not to Tweet
Granger says she used to advise companies to start with a blog, but now suggests getting on Twitter first. She also advocates engaging in conversation. Connecting with a business owner on Twitter "produces the necessary personal touch so many clients and customers prefer," she says, and offers a time management tip for those tweeting entrepreneurs. "[Free] mobile tools such as Tweetie and Tweetdeck can make it a lot easier to keep up with the ongoing conversation," Granger says. That way, a company announcement of a new product or promotion could be tweeted with a link back to details on the company's blog or Web site, all while standing in a latte line.

The rapid-fire conversations on Twitter have the added bonus of giving entrepreneurs who've built a network, "instant answers to questions, feedback on brand elements, product ideas, etc.," Colvin says.