Can We Make Social Media Pay?

34 Comments

Recent discussions suggest that we’ve reached that point in the evolution of social media.

What point? The point at which social networks have become sufficiently popular for entrepreneurs to recognize the potential of this as a market space not just for showing advertisements in well-defined sidebars, but through which they can actively generate sales by using and participating in the social medium itself.

Just as email became a forum for unsolicited sales pitches (spam), web sites for graphical ads, online article comments for the positing of promotional links (comment spam) and blogs for paid reviews and promotions, now paid and sales-centric tweets are on the agenda.

In each of these cases, users felt a certain cynical inevitability as a communications channel that was previously free of promotions — a source of pure information — became yet another forum for selling. But it didn’t stop us using those vehicles.

In the interim, though, confusion and disenchantment reign on both sides of the equation. Today, just as some people ask the question, “Would I tweet if somebody paid me to?”, Aliza and others ask “When is ‘free’ too much of a good thing?” It seems that those of us using social media to brand-build and self-market face real challenges in making social media pay. Perhaps the likely solutions to these problems are as much about our approach and philosophy as they are about the practicalities of using social media to sell.

The Challenge

Nathan Hangen, in “Your Dream is Under Attack”, bemoans the fact that when entrepreneurs break with their self-built tradition of giving away free content by using the same channels to actively promote a product they want to sell, their followers get shirty.

While in “When Is “Free” Too Much of a Good Thing?”, Aliza proposes ways to get around the uneasy feeling that arises when her followers try to take advantage of her professional generosity — the kind of generosity on which millions of online brands, corporate and personal, have been built.

To my mind, underlying these two anecdotes is a single question: Can we harness the enormous potential of social media as a direct sales vehicle?

Social Media in Principle

In his article, Hangen asks, “What is it that makes one place acceptable for commerce, and another ‘sacred’?” Nathan is obviously one of those entrepreneurs who’s at the front of the proverbial wave, and has already perceived the sales-related possibilities of social media.

The thing is that most non-entrepreneurial users see social media as, well, a social forum. Yes, maybe they find your offerings interesting, informational and educational, but most people I speak to see social networks primarily as interesting and entertaining.

From the perspective of the consuming (rather than selling) world, the thing that makes one place acceptable for commerce and another “sacred” — or unacceptable for commerce — is its underlying purpose.

The first place — an online store, your company’s web site, your professional blog — is clearly and primarily built for commerce; the other — a social networking site, a friendship, a weekend barbeque — has fun, interest and enjoyment as its underlying premise. We don’t go to a BBQ hoping to buy a TV, nor do we go to a department store to make friends.

Trust is central to this differentiation. In a commercial forum, the consumer knows that you’ll be trying to obtain their trust so you can sell to them. They’re ready for it. In the second forum, their guard is down: no one’s expected to be actively trying to convince anyone else of their moral credentials. At the same time, though, the other factor that differentiates a social network from a commercial forum is that in a social medium, the user knows they have some control: they have a voice.

So in a real or virtual social network, the development of trust is more organic and more of a two-way street than it is in a commercial forum, since no one has a conscious, vested interest in being seen as trustworthy. People engaged in these networks take a more personal risk in trusting another individual, and invest themselves more heavily in the relationship in the process. They also have the power to make it known if someone in that forum does something to damage that sense of trust.

Is this too touchy-feely a way to think of your Twitter followers or your Facebook fans? If you’re the kind of entrepreneur who talks about your personal branding efforts as “giving back to the community you love”, and “fulfilling your passion”, some would say you’re using the same kind of rhetoric, but in a different field.

The issue of trust is ultimately the reason why, as Nathan testily observes, “when a passionate entrepreneur uses social media to create relationships and ask for money, that’s over the line.” Few of us believe that social relationships should be financial. In the real world, and currently online, these concepts do not usually go together. This may also help to explain the ream of responses to Aliza’s post from entrepreneurs hounded by followers who want usually costly advice for free.

Social Media in Practice

In the frustration of Hangen’s and Aliza’s posts, we’re reminded of that essential truth about social media: we don’t own it, and we can’t control it. Social media is a two-way exchange, so entrepreneurs will always be at the mercy of the crowd. Unlike traditional forms of promotion, social media talks.

Yes, this does mean that the more demanding of your followers can seem mightily demanding. But it also means that as we’re carried along on the inevitable swell of social media’s viral commercialization, we have to accept that the boundaries for those promoting themselves, as well as those hungry for information and advice, won’t always be clear. We need to consciously look for and observe them.

The concept of personal branding has done a lot to blur these lines. So perhaps one of the most important elements is for the entrepreneur to identify the boundaries for themselves before they start trying to sell through social media.

If you decide, for example, that you’re going to use social media to build your professional reputation, you may automatically assume that you’ll disseminate relevant information a way to demonstrate your expertise and passion in your field. Great.

But perhaps you should also ensure that you make it clear from the outset that you’re a business person who has something to sell, to help set the right tone for the relationships you build through your social networking efforts, and possibly keep the number of followers you upset when you promote a special offer, or draw the line on giving further advice, to a minimum.

The techniques entrepreneurs use to navigate the largely unchartered waters of casually dispensing professional wisdom in 140 characters, expressing their personal and professional integrity in posts on a company blog, and telling people about the products and services they’re selling will be as individual as each personal brand. Whatever the case, the entrepreneur must ensure that their approach to social media aligns with the way their audience sees and expects to use it. Once they understand this, if they wish, they can devise appropriate ways to push the envelope toward making social media pay.

Have you used social media to direct-sell your products and services?

34 Comments

Adam Gray

I think that the dynamics of the market should dictate what should work and what shouldn’t.

If a blogger wants to earn money they can have a donate button, adverts, or perhaps an affiliate store. That’s fine. All of us that blog recognise that a good blog take s lots of time to run, and sometimes we need to monetize this.

Isn’t someone who keeps taking free stuff and never paying just a freeloader?

Anyway, that’s my view on it.

As for spam. If nobody ever clicked a spam ad, opened a spam email or
followed a spam link, it would soon dissappear. So the future of spam is very much in our own hands.

Eliza Keagan

Greves Detectives is a New Delhi (India) based investigation agency, providing a broad range of investigative services to corporate, government and legal clients.

Lexington SEARCH ENGINE OPTIMIZATION

I do agree at The point at which social networks have become sufficiently popular for entrepreneurs to recognize the potential of this as a market space not just for showing advertisements in well-defined sidebars, but through which they can actively generate sales by using and participating in the social medium itself.

Angel Smith

With unlimited numbers of products to select from, we carry items ranging from pens, gift sets, cooler bags, drinkware, safety products.

invisiblemikey

Of course “we” CAN make social media pay. I’m with those who would ask, “SHOULD we make social media pay?” And I would answer no, because every river of communication that is commercialized without sufficient regulatory protection becomes toxic.

I make it a habit to track any person or company that approaches me uninvited, and if I need or want what they offer I do my best NEVER to buy from them. Sometimes it means paying more, but I don’t believe in rewarding bad behavior.

If I want something, I’ll come to you. The idea that anyone (besides the sellers) benefits from direct marketing is a clever distortion of fact. Salespeople are not your friends, and friends whose main contact with you involves selling aren’t friends either.

Thanks for writing this stimulating post!

teliczan

After 3 years of blogging about the virtues of Michigan through HDR photography, I added a personal facebook page to the social marketing mix. I discovered that mentioning new blog posts on the facebook page dramatically drove up the visitors to my blog. Then, I started adding links to purchase my photos on Imagekind for individual posts. This has been generating some positive results.

Ultimately though, I look at social media as a way you can build your own pipeline to get your message out there, rather than relying on traditional media. That alone is extremely valuable, however, it takes a lot of work and sticking with it.

Lakia

Thanks for the article, it was really helpful. I would say that I do use the social media scene to solicit business for my speaking company. I find it really, extremely helpful in getting the message out quick and easily.

In regards to your comments dealing with spam, and how it has evolved with different inventions (email, FB, etc.), I haven’t received anything from Twitter as of yet, and I’m really not looking forward to it.

In all, thanks so much for your post!

Linda C Smith

This is a great post and truly timely discussion. However I wonder how many people who write blogs giving away information are aware that they are indeed “giving away” information? The blog author is always in control of content. Also there will be those who comment with adverts for their own “stuff;” if you moderate your blog you don’t have to include those comments; also, if someone asks questions in a comment that cross your own line from conversation to consultation, email them a rate sheet of your services. Doing business online is really just like in person; and yes, people do broker business deals at a bbq.

Kerry Heaps

Great Article! I too run into the same issues, people want more leads, information and counseling for free, last year I let this go a little too far and am paying the price this year, as a business owner, I lost money. However, I found that having someone else answer my phone and emails helped ALOT. I made myself more in-accessable so if someone wanted to “pick my brain” they would have to book a consultation. It really weeded out the “I want and deserve everything free” people from the people that truly understood the value of information. These are the people that make for a better client down the road.

inviralmentblog

This will be interesting how it shakes out… I believe the key will be small niche groups and relevance. If you blog about movie stars and gossip, it may be hard to find appropriate products. If you blog about hobbyies and model trains (for example), the community may be small, but will be a better audience for relevant products and advertisements.

Sherrilynne Starkie

This is a topic I’m hearing discussed with more frequency. Some very high profile bloggers I’ve talked to are complaining about making no money. 2010 should be an interesting year.

oulitladder

I think that what the high profile bloggers should be doing is not complaining about making no money, but asking themselves how they can make money.

Aside from advertising a few things come to mind, firstly they could follow the lead of webcomics and set up a “donate” button on their site. A few of the more popular artists of webcomics are able to survive on the money they make from the donations and the sale of merchandise. That brings me to my second point, merchandise, if well thought out and properly marketed can be a fairly good money earner.

Thirdly, there’s the option of using the blog as a launch pad into journalism. A popular blogger has the audience encourage editors to take on their work and enough evidence of their ability to demonstrate the quality of work they can produce. Another option is to offer a premium service, where subscribers are able to view more content.

Finally, as social media becomes more popular we’re going to see it have a greater influence on the world. The firm I work for (a media monitoring agency) is already providing a report service that details the level of social media chatter about our clients from key blogs. One of our most recent reports saw us tracking Twitter for pictures of temporary art installations that were set up by a PR company to promote a product; the idea being that we could track the potential impact of the pictures to provide an idea of how effective the campaign had been. With this in mind influential bloggers should get an idea of just how important their role may be in the year(s) to come.

J

Reminds me of a clip I’ve seen in youtube titled Everything’s Amazing and Nobody’s happy…

Seriously, a lot of times, people take things for granted forgetting the fact that nobody actually owes them an answer. People did it out of grace, and here we are demanding that they do it immediately and free of charge. Then, as time goes by some of us become newbie salesman who are desperate for sales and at the same time log onto the net thinking that we owe them a living, so they stuff blogs with advertisements and demands that people buy from them. I mean, I don’t mind listening to a salesman who is talking about something I need, cause I looked for him. I DO however, have in issue with an idiot who joins a conversation or a blog trend with a sales pitch, typed in bold.

I mean, come on, I find a person’s information valuable, to the point, and answers my question, I go to his site to find out more. So what if it’s a site that talks about the goods he represent? I mean, I went there wanting to find out about the stuff he talks about.

sandra greenall

I have to say I am in complete harmony with Rick’s comments. He is so correct in putting forward the argument that everybody loves something for free all of the time ……. yes! that would be great but in the real world that is not reality.
I have several sites from ; help for technophobes, making money online, to breast cancer awareness, to just for fun items. My goal is, not to fleece those I communicate with on commercial networking sites, but to give a real, useful and informative site which is of use to the community whether they want to buy or not. In the end it’s their choice.
Sandkat

Are Morch

This will be one of the Hot topics this year.

For Web 1.0 is is correct as you said that email became a forum for unsolicited sales pitches, web sites for graphical ads, online article comments for the positing of promotional links and blogs for paid reviews and promotions.

With Web 2.0 we add Social Networking. We all have used Facebook for a while. But I think Facebook real success as now a well established Marketing tool came with Twitter.

We are coming up with new and innovative ways to promote our products or service.

Unfortunately spammers will be putting their mark on this new trend.. But has not spammers always been there?? We just can’t allow them to dictate how to run our business.

Our dreams and hopes should be the same today as they where 10 years ago, just that now we are on a different arena.

But I agree with Nathan the clue lays in building the right Trust Bridge..

So, yes we can make Social Media pay, and I think with some of the ongoing discussions we will start shaping the path that will become widely accepted on Social Media.

Cheers.. Are

Nathan Hangen

There’s still a bit of a divide between the two groups (sacred/business), but the person/persons that build the bridge are going to do very well in 2010 and beyond.

We’ve got to find a way to preserve the “Trust Agent” capacity, while still being rewarded for moving the ball ahead. It’s a tough task, and we might need new technology/innovation to do it, but that’s part of the fun.

uninvoked

That’s why I stopped running websites for a long time. The people involved kept wanting more, and more, and more. They wanted it for free. They wanted it that exact moment, and I was a twit for not giving it to them. >_>

ian in hamburg

You’re asking the wrong question. I should be: now that we have them hooked, how do we get the suckers to pay for social media?

duellsy

Using sites like http://twithawk.com is a great way of letting a system kick off a relationship with potential leads for you, and you just follow up when you get back to your computer. That way you can concentrate on other things, and let it market for you

rick

it’s fine to say we have to be aware of all of this… but SO DOES THE COMMUNITY. It’s childish of people to always expect more information, more advice, more time and more expertise for nothing and then to get upset when we use the marketing we’re doing to actually make money. Sure, we need to be aware that it’s an area that’s sensitive and that there’s not a hard, bright line…. but it’s more than a little annoying to see people who have jobs and get paid for THEIR work to rail against how making money is evil. Um…. really? OK, give away your salary to charity. Oh, you need to eat and pay bills? Yeah, so do we.

All we can do is to try to treat others with respect and understanding and not simply build up a community and then to incessantly milk them for money. At the same time, people who generally listen need to understand that the people producing what they listen to can’t do that for free all of the time.

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