Social Networking; A New Way To Do Business?
Posted by Mitch Mitchell on Dec 14, 2006
About a month ago a friend of mine, Jill Hurst-Wahl, was being interviewed by one of the local news stations about an interesting social networking site called Second Life, and wrote about it in her blog. In essence, it's a place where you create a human avatar and actually interact with people all over the world, both socially and professionally. In an odd way, it's like the type of thing that happens on the golf course (for those people who golf; I don't), only the world is your limit.
Social networking, which is another term for online networking, is fast becoming a way for people to reach other markets that they'd have never had the opportunity to reach before. These online communities offer different ways of interacting with each other. For instance, Ryze offers the opportunity for people around the world to actually talk to each other through what they call "networks", which will remind some of you of the old bulletin board systems, and networks can be both social or business. Then there's LinkedIn, which goes a different direction and actually requires you to either already have a person's email address, or to go through an intermediary in other to "meet" someone you want to contact, and any conversations held are either through email or by telephone, if the connections are accepted.
A question that's come up lately is whether this is will replace regular networking opportunities at some point, as more and more people get online. My theory on this is that it won't even come close, for many reasons.
One, I notice that, online, most people work hard in trying to promote themselves more than try to engage another person to talk about themselves. Sure, that happens in person also, but face to face, it still has a more personal touch.
Two, most businesses have to start at home, or at least perceive themselves that way; by that, I mean a business establishes itself with the initial idea of doing some business locally, and there's no guarantee that all the local businesses a person might wish to work with are online in any form, including email.
And three, at least initially, every new business owner looks for ways to press the flesh, if you will, which can't be done as readily online. For instance, the Syracuse Chamber of Commerce has, or helps set up, breakfast, lunch and dinner events around town, and in their home offices, and they're always well attended; you can't get that from online networking. A group such as the Professional Consultant's Association brings together independent business persons once a month to discuss issues that pertain to their business, as well as having an educational session, and has the flexibility of having at least one social gathering a year, or more if it needed to. And I don't know how many communities have a BNI Chapter, but I bet it's at least hundreds, if not thousands, seeing as how the Syracuse area has, in their own words, "dozens".
Still, it would be prudent for any business that's looking to work with organizations outside of their local area to investigate social networking to some degree. I've been a beneficiary of social networking, as it has led to speaking engagements and interviews around the country, and a consulting assignment or two here and there. They say we're in a global marketplace; get ready to expand your world.
Your second point assumes that the business CAN have a local market. Some entrepreneurs start businesses that may not have a local market at all. And so they use whatever marketing/networking techniques to reach their prospective clients wherever in the world they are. There is also the fact that a prophet is not recognized in his/her own home, which leads many to do work elsewhere were they “not being from there” makes them seem better.
I do think that some businesses and some people have an easier time networking online. In my industry, people have really taken to it. If I were not networking online, I would not exist. I also know that WHO I need to network with, in order to be effective in my work, are not necessarily people that I can easily meet face-to-face. But I can network online with colleagues across the world. I can work on a project with a colleague in Maryland using collaborative online tools. I can interview someone for a journal article using instant messenger or Second Life. I can negotiate an assignment with someone in England.
Not everyone online networking tool is for everyone, so I hope your readers will experiment. For example, LinkedIn has been important for keeping track of some of my former work-mates. Ryze provided interesting information at times, but didn’t put me in the right networking circles. Instant messenger has been helpful (some days more so than others). Flickr has proved to be fun while helping me learn more about some of the people in my network. Yet, e-mail — which is not considered a social networking tool because it is old school — is a lifeline. And what has worked (or not) for me, may not be the same for you or for your readers.
BTW a lot of major companies like Reuters, IBM, Harvard, Nike, Coca-Cola, etc. are investing in Second Life. They see something there…Where the big dogs go, maybe we should follow (at least for a little while)?
Hi Jill. Yes, my point does that, and I think it’s a valid assumption for most people to have, though it can turn on them in a heartbeat. As a consultant, I find that most of my work is out of town, even though there are businesses locally that I could perform the same services for. Myself and others have lost out on contracts that were within driving distance to companies much further away because our skills aren’t perceived as being the same as those from an out of state company, and these businesses have been willing to pay twice the amount we would have asked for. Still, most of us, and that’s the keyword I used, do perceive that we will at least have the opportunity to do some business within our local area.
BTW speaking of Web 2.0, social networking, etc., I hope you saw that Time magazine has named “you” Person of the Year. http://www.time.com/time/magazine/article/0%2C9171%2C1569514%2C00.html