ED HAYES

I found another post on LinkedIn about social media.  This time it was someone expressing that the ROI is very low, from what I could tell.  Here is what I had to say.

The cost of investing in social media is $0 for the tool, and whatever time you want to spend using it. The problem from my viewpoint is that companies or people who try to leverage social media do it incorrectly. Partly, this is because the people and companies who use these tools to market their products and services do not understand social media, have not grown up using social media, or will not hire young talent that lives and breathes social media.

Social media should be seen as an interactive method of communication. Another point of contact. It must be treated as such: professional and something that cannot be ignored. It will become part of your brand image; keep professionalism in mind. If communication that comes from these tools is ignored, the customer will see it just as you ignoring their phone call.

Social media is VERY CHEAP to implement, and very powerful if used correctly.

Here is the original post:

Why Doesn’t Social Media Pay Off?

The marketplace is full of businesses “jumping into” the world of social media. We’re also witnessing a continued upward trend in adoption of social media by inividuals globally. In many cases both businesses and individuals are chasing the “holy grail” of an ROI from their efforts.

The consulting firms are creating new metrics to measure social media ROI. Brands look at social media as a new extension to the old game of marketing. Individuals start blogs, run banners and google ad sense hoping to turn revenue. Advertisers are flocking to the major social networking platforms hoping to “grab a few click throughs”. Broadcast media, branded show host and most all of the reality TV shows are integrating Twitter and other “social tools” into their market presence. Music artist are vying to have the most followers on Twitter and it seems everyone is racing to adopt the latest and greatest “trick and trend” using social media tools. However few have a clear intent or defined method as to how to create social currency or revenue from all their efforts. Most are just following the crowds and wondering what all the noise is about.

Why The Payoff’s Will Be Limited

Everyday the marketing messages flood the internet promising to make users money with some secret sauce, a new software program, a new Twitter utility, a new MLM scheme or a “how to” book and all for a fee. Those focused on finding quick results or money from using social media buy into the hype and exaggerated promise of short cuts to building revenue. Millions of dollars, if not billions, are spent every year on false promises that don’t deliver bottomline results rather just increased business and individual expense rather than improving revenue.

A payoff from using social media comes to those that understand the difference between a tool vs. a craftsman. A tool, which is available to all, is used to build or fix something. A craftsman can build or fix something of value and get paid for it. The tool is simply something used to create something of value. A craftsman possesses unique knowledge and skill required to build or fix something better than others and thus he/she uses tools to create value which generates revenue or social currency. A craftsman of distinction possesses the skill and the knowledge that sets them apart from all the others whom use the same tools as they do. A master craftsman is paid for their value as a “master” whom can produce unique creations or fix perplexing problems that others can’t.

Social Media payoff’s will be limited to the master craftsman of business, of relations and those that are skilled and have unique knowledge concerning the markets of conversations.

Why doesn’t social media payoff? Probably because you or the suppliers supporting you and your social media efforts are not master craftsman. Rather they are much like the masses whom have all the same tools but don’t possess the required skills and knowledge needed to be a master craftsman at building valuable conversations or fixing old ones so that you can convert the social currency of conversations to revenue. Get it? If not find a master craftsman who does otherwise you’ll waste a lot of time and money from those claiming to know how to use the tools but do not know how to create something unique or fix something that can create the innovation you or your business needs.

An ROI from social media doesn’t come from the tools rather the skills and knowledge on how to use them for a specific purpose, value creation.

What say you?