Social Media Does Not Equate To Sales

May 8, 2011 4 Comments Business & Work, Money & Finances

For the past few years, we’ve been inundated with the idea that businesses must use social media to drive sales.

The purported logic is that social networks are an effective and necessary avenue for reaching out to customers. The more you reach out, the more money you will make. However, USA Today says a new study shows that social media has no real effect at all.

The study, a collaboration between Forrester Research and GSI Commerce, analyzed data captured from online retailers between November 12 and December 20, 2010. The research shows that social media rarely leads directly to purchases online — data indicates that less than 2% of orders were the result of shoppers coming from a social network. The report found email and search advertising were much more effective vehicles for turning browsers into buyers.

You can request a free copy of the report, titled “The Purchase Path Of Online
Buyers”. Its focus is on driving online retail “holiday shoppers”. The premise, which seems to bear out in the report’s findings, is that people are on Facebook, LinkedIn, etc. for many reasons that supersede buying. It’s not merely a case of going where your buyers are, but where they go to buy; and social media is proving not to be that place.

The biggest effect of social media outreach, in terms of purchases from it, seems to be news about short-term deals. In that case, 5% to 7% of purchases are influenced by social media activity, states the report.

But the report admits that since most retailers only track where the sale comes from, it’s impossible to say how many “views” or exposures a buyer had – and where – prior to making the purchase. It does not and cannot track the influence on a purchase that might have come from social media conversations, endorsements, buzz, etc.

While there is probably a lot of truth and value to this study for large retailers, I suspect that social media is – and will continue to be – extremely important for small business (both products and services) – in terms of building relationships and reputation.

The key to leveraging social media, as I see it, is judiciously participating in your networks and “adding value” in terms of intelligent information and problem solving, thus establishing you/your business as a reliable source and provider. While this may not result in immediate sales, hopefully it will support and enhance your other marketing efforts.

If anyone would like to fund me to conduct a study on social media’s impact for small business, let me know. Meanwhile, I’d love to hear your experiences — have you gotten new clients/customers/sales from your networking efforts?

Business Lessons from a Standing Ovation

May 2, 2011 2 Comments Business & Work, Money & Finances, Passion & Joy

Last night, I attended a Gary Burton/Chick Corea concert at Santa Fe’s Lensic Theater. For these two jazz legends it was the last night of a grueling global tour, although there was no evidence of burn-out or boredom.

As professionals, they gave their fans a polished and passionate performance, connecting with the audience through brief anecdotes, thanking us for being there, and playing their music with exuberance as if it were the first, and not the umpteenth, time. They were present.

At the end of two long sets, the audience responded with a rousing standing ovation and the players graciously returned to the stage for an encore.

There are two thoughts I want share from this experience:

1. The audience had already shown appreciation for the players by virtue of having purchased tickets. Money is a standard form of appreciation for something received. The performers showed appreciation for the audience by showing up, starting on time and putting on a professional show.

Nothing more was required of audience or performers. Therefore, the enthusiasm of the audience and gracious response of the performers were “icing on the cake” for both. Being extra-appreciated, as a consumer and/or provider, costs nothing extra and leaves everyone with positive feelings.

2. Standing ovations are a cultural phenomenon associated with the U.S., and seen as crass by other cultures. I am told that in Japan an impressed audience will clap incessantly, even through an encore, but they do not stand; and certainly do not whistle or whoop. As a performer (or business provider), it is critical to understand and communicate with your audience (or market) on their terms.

Nothing feels so fine as a standing ovation, or the equivalent. In my businesses, I have experienced the equivalent when a client has thanked me with a gift, referred an associate or become a friend. I hope I have expressed my appreciation in similar ways, and I hope that you, reading this, know I am grateful for your time and participation in this blog!

How have you experienced a “standing ovation” in your business, or given one to someone in theirs? Please comment below.

How To Make Money Online

March 30, 2011 1 Comment Business & Work, Money & Finances

Maybe you’re a lot smarter than me and I should be embarrassed to admit this, but I’ve spent many, many hours in the past year online attending webinars and teleseminars, and downloading and reading free eBooks offered by dozens of “gurus” who promised to help me make a fortune online.

I wanted to understand how to use social media – Facebook, Linked In, Twitter, ad words, WordPress – and the tricks for integrating and making my efforts “go viral”. I wanted to make my countless hours at the computer – writing blogs, emailing, updating profiles, commenting on sites, tweeting – pay off… in real dollars.

I’d like to tell you what I’ve learned: Many of these guys (and most are of the male persuasion) use exactly the same formula that they will teach you to replicate, for a price. You begin by using a “landing page” on your blog or website to get people to give you their name and email address (“your mailing list is your gold!” they say) by offering free sound advice, via an eBook, podcast or video. You don’t even have to create the material yourself, they say, as there’s so much “good stuff” on the internet already, you can just recycle it.

Their point is, once you start building your email list, you “add value” to “build relationships” by setting up automated drip marketing campaigns to keep making new offers your list recipients cannot refuse. Every time they open an email from you (simple, unformatted, compelling) you get them to read/listen/watch your next offering that builds your credibility as “an expert”. As you do this, over and over, you add teasers to keep them “wanting more”, with bonuses for sharing your links. You hold free webinars and teleseminars with invaluable information (“I can’t believe how many people we have on the call – thanks!”). Not only must they believe you are a popular expert, but you must convince them that, as someone who knows what he’s doing and has already made a fortune online, you sincerely care about their success.

At certain points in this “relationship” you offer your “followers” a product for a few bucks. Those who are willing to buy this may be good candidates to larger-ticket items, like various levels of your exclusive “guaranteed success” program. “For just $19.95 a month you get ____, BUT if you’re really serious about making money online, you’ll give your self the gift and benefit of the whole program for just $995.” You also create scarcity – “only a few seats remaining” or “act now and you’ll also get…” Sounds like late-night TV ads for Ginzu knives, eh?

But the fact is, Ginzu knives, Popeil’s Pocket Fisherman and the current equivalents – like “make six-figures a year online” salesmen – sell millions and make their inventors and marketers a lot of money. People, in general, are trusting and gullible. We want to believe there are replicable formulas and simple programs we can use, and gurus we can follow. However, if you were like many of these guys, you’d already possess certain traits and resources: you’d be a super salesman, with a technical team and sharp marketing/manipulation skills. You’d have strategic alliances with some of the Big Players so you could use their email lists, and you’d eat, sleep and breath your sales program 24/7.

We know that the way these rah-rah Tony Robbins clones have made a fortune (if they are to be believed) is by selling their programs to people who are often desperate to get some cash flowing in now, and lack the technical expertise and financial resources – not to mention personality – to replicate the program…even after they bought, listened to and followed to a T, the 64 CDs, 36 workbooks and attended the “life-changing Live Event” on the other side of the country.

I’m not saying there isn’t much to learn when it comes to internet-based business, and those who offer excellent training programs. My concerns are the time and money you (or I) have to devote to this sort training, and whether it is in keeping with who you are, what you want to share in the world, how you can “monetize” your efforts with integrity, and whether these formulaic routes will actually “build relationships” and accomplish your goals.

If you want to create passive income or build/increase your business from your online efforts, here are a few things I’ve learned:
• Have a plan. Be clear about the services and/or products you’re offering and why.
• Be genuine. Make it easy for people to contact/communicate with you and buy from you.
• Know you can’t do it all alone. You need tech support and expertise. Don’t be afraid to outsource, and learn how to do that well and cost-effectively.
• Get a mentor or coach, join a Master Mind group, or have a buddy to whom you’re accountable for implementing your plan.
• Don’t be a sucker. If, after doing your due diligence, you buy a “how to” program, use it. Work it.
• Focus on just one project at a time. If you are using a WordPress blog, for example, become expert at that before moving on.
• Learn what efforts get you the most mileage and don’t waste time with the thousands of other “good ideas” or directions you could go in.
• Since “relationships are everything,” decide who you want to be in relationship with, and what you can offer them of true value.
• Be patient and realistic, not just about your own learning curve but about building your reputation and network.

I’d appreciate if you would share this article, if you feel it’s worth sharing, and leave your comments. Oh, and feel free to contact me if I can be of service to you. Thank you!