The Cost (and Payoff) of Investing in Social Media

YouTube: Be a Star
Another way to capitalize on the fast pace of social media is by posting videos on YouTube. With a little creativity and relatively low overhead (Flip video cameras can be had for as little as $100) uploading a short clip can be a rapid way to test the market. "Release freebies to capture a niche. Then find the demand and create the product," says Steven Weathers, who documents his adventures in China on YouTube.

As founder of American English Circle, and producer and host of Foreigner Perspective, Weathers uses videos to help the Chinese learn English and to give Westerners a glimpse of life in Asia. By hiring students he spends around $10 per finished minute of video, less if he tapes himself.

To learn how to create good content Weathers suggests watching some viral videos. The payoff? "You will reach a wider audience than with network TV," says Weathers.

LinkedIn: Business Networking Made Easier
A glowing recommendation is a gold star for any type of business, so why not collect and post them for all to see? It's easily done on LinkedIn. Creating a profile allows an entrepreneur to create an online career history, then to connect with others they've worked with. Obtaining a recommendation from a former colleague or existing client may help sway a potential investor or customer.

Additionally, Kimberly LeRiche of JK Virtual Office Resources says, "LinkedIn provides the opportunity to connect with others who are also looking to create partnerships or to collaborate." LeRiche also notes that LinkedIn has incorporated additional social networking capabilities such as special interest groups and open discussion threads. Digests from these groups can be delivered by email to scan or read in-depth, depending on interest in the topic and how much time there is on hand.