This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Social Networking Is for Social Businesses

If you align with one network, buying into Facebook's marketing developers program, described by Rachel King for ZDNet , you're making a big mistake.

Social media marketing is just not worthwhile for a scaled business. Todd Wasserman at Mashable is right : the hype over social marketing was "itself a form of marketing for self-conferred experts looking to make a buck." IBM (IBM)IBM (IBM) has a study out on this which found all the social networks combined contributed just 0.34% to Black Friday sales, and Twitter contributed absolutely nothing.

Social networking reminds me of open source, a beat I joined in 2005 when its hype was reaching a peak. What we found was that the benefits of open source were real but they mainly went to consumers of open source products, in proportion to how much they committed to helping the code base. There were no open source billionaires, which doesn't mean open source was worthless. It's just that the value went somewhere other than into a CEO's pockets.

The same will prove true with social networking. Its benefits will mainly accrue to savvy small businessmen and women who spend the time to work on their business, not just in their business, turning suspects into prospects, prospects into customers, and customers into regulars.

Social is small business' friend, not Madison Avenue's.

At the time of publication, the author was long GOOG, IBM and MSFT.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FB $117.86 -0.17%
GOOG $696.67 0.14%
GM $30.63 0.13%
MSFT $49.98 0.22%
AAPL $93.04 -0.62%


Chart of I:DJI
DOW 17,690.09 +38.83 0.22%
S&P 500 2,057.30 +6.18 0.30%
NASDAQ 4,732.1250 +6.4860 0.14%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs