Twitter Archives - Page 2 of 17 by Mark Murnahan

Klout: Online Influence Measurement … Like it or Not!

Klout is a social measurement tool that places a numeric value on a person’s influence within their social media circles. The service currently pulls data from Twitter, Facebook, LinkedIn and Foursquare for their influence calculations, but plans to add Google+, YouTube, Facebook Pages, and others for a total of 20 networks by the end of 2011.

On the surface, it may sound positively impersonal, and even a bit absurd to make judgments based on a number, but is it really? We’ve been doing it for many years with credit scores. I don’t think it is a good idea to become obsessed about statistics such as these, but I do believe it is valuable to be aware.

Klout seems to have really honed in on a couple of interesting psychological and business needs of social media. I will explain what I mean, and how it could have a real-world impact for a lot of people, whether they like it or not.

I wrote about Klout back in 2010 in an article on the topic of social media measurement tools and what they know about you. It raised a question of what this type of service may know, and what level of accuracy or inaccuracy they may reflect. This type of data collection across multiple networks is subject to errors. Reliability is simply not guaranteed, but it is getting better.

Klout Score and Perceived Personal Worth

Klout hits on a very personal psychological need for a lot of people, which is the need to feel valuable. I think we can largely agree that we all want to feel like we make an impact. We want to know that we are being heard.

This is not to say that we are all Narcissistic for using social media, but only that it would not be so fun to communicate if nobody listened to us or acknowledged us. If that was the way we wanted it, we would just keep all of our Facebook, Twitter, LinkedIn, and other social media thoughts to ourselves. We could keep them on our own computers and we wouldn’t need this Internet to share them.

The desire to share and collaborate clearly creates a strong psychological drive for many people. I do not think it is at all strange for somebody to feel a sense of greater personal satisfaction when their thoughts or ideas receive Facebook shares and comments, or Twitter replies and retweets. It is no more Narcissistic or bizarre than how it feels to receive applause for any job done well. In some cases, it can actually be quite humbling, like when the whole restaurant starts singing “Happy Birthday” and you just want to sink deep down into your seat as you blush. At the same time, it feels kind of alluring and it makes you smile.

When it comes to social media, it is easy to be just a bit allured by the objective measurements. I’ll be the first to raise my hand. When I see a squillion people sharing my work, I love it. It makes me happy, like sucking free grape soda through a garden hose, while eating from kiddie pool piled high with bacon. It feels very satisfying, and validating.

So, I am sure you can imagine how this psychological desire applies to Klout. Klout measures a person’s influence of others. People want to know their Klout Score, and it is pretty hard to fault them for that. This makes it easy to understand why it has had such a strong level of attention, and how it holds huge potential for continued growth.

The Business End of Klout

Far beyond the typical consumer desire to be measured as accepted, popular, or influential, there is a strong business side of Klout that is undeniable.

Thousands of companies are using Klout’s information in hiring decisions, purchasing decisions, and in their communications strategies. Whether you like it or you don’t, and whether it is right or wrong, numbers are a front-line component in our business world. Scoring such as offered by Klout is being relied upon more all the time as Internet static continues to flood into our business communications.

There is magic in numbers! I am a marketing guy, so I rely on a lot of different sets of numbers. Many of the numbers that are conventionally viewed as important don’t mean a damn thing to me. Inaccurate or meaningless data would be an easy way for a guy in my line of work to waste a lot of time, and burn through huge amounts of money. That means I need the good stuff. I want the least fallible information I can get my hands on, and that is where my attention is focused.

Klout’s data is largely based on activities across Twitter, Facebook, and LinkedIn, but there is another component that allows a sort of industry-specific peer review. Yes, Klout also includes industry-specific information about an individual’s influence. In this peer review model, others may enhance a person’s Klout by clicking to give them “+K” for a given segment, and it is like a vote. The “K” is wisely limited so that a user only has five “K” to give out per day. So, if I wanted to give you a “K” because you influenced me in some way, I cannot go wild and spike your Klout score. If I really liked you, I could come back each day and give you “K”, but that would not provide unreliable data, because it would reliably reflect your high level of influence upon me.

Klout also attempts to define a style in which a person influences others. These styles provide an interesting overall view of how the individual uses their social media. There are sixteen different styles, and they are described as follows:

Klout Style Definitions
Curator: You highlight the most interesting people and find the best content on the web and share it to a wide audience. You are a critical information source to your network.  You have an amazing ability to filter massive amounts of content to surface the nuggets that your audience truly care about.  Your hard work is very much appreciated.
Broadcaster: You broadcast great content that spreads like wildfire. You are an essential information source in your industry. You have a large and diverse audience that values your content.
Taste Maker: You know what you like and your audience likes it too. You know what’s trending, but you do more than just follow the crowd. You have your own opinion that earns respect from your network.
Celebrity: You can’t get any more influential than this. People hang on your every word, and share your content like no other. You’re probably famous in real life and your fans simply can’t get enough.
Syndicator: You keep tabs on what’s trending and who’s important to watch. You share the best of this with your followers and save them from having to find what’s hot on their own. You probably focus on a specific topic or cater to a defined audience.
Feeder: Your audience relies on you for a steady flow of information about your industry or topic. Your audience is hooked on your updates and secretly can’t live without them.
Thought Leader: You are a thought leader in your industry. Your followers rely on you, not only to share the relevant news, but to give your opinion on the issues. People look to you to help them understand the day’s developments. You understand what’s important and what your audience values that.
Pundit: You don’t just share news, you create the news. As a pundit, your opinions are wide-spread and highly trusted. You’re regularly recognized as a leader in your industry. When you speak, people listen.
Dabbler: You might just be starting out with the social web or maybe you’re not that into it. If you want to grow your influence, try engaging with your audience and sharing more content.
Conversationalist: You love to connect and always have the inside scoop. Good conversation is not just a skill, it’s an art. You might not know it, but when you are witty, your followers hang on every word.
Socializer: You are the hub of social scenes and people count on you to find out what’s happening. You are quick to connect people and readily share your social savvy. Your followers appreciate your network and generosity.
Networker: You know how to connect to the right people and share what’s important to your audience. You generously share your network to help your followers. You have a high level of engagement and an influential audience.
Observer: You don’t share very much, but you follow the social web more than you let on. You may just enjoy observing more than sharing or you’re checking this stuff out before jumping in full-force.
Explorer: You actively engage in the social web, constantly trying out new ways to interact and network. You’re exploring the ecosystem and making it work for you. Your level of activity and engagement shows that you “get it”, we predict you’ll be moving up.
Activist: You’ve got an idea or cause you want to share with the world and you’ve found the perfect medium for it. Your audience counts on you to champion your cause.
Specialist: You may not be a celebrity, but within your area of expertise your opinion is second to none. Your content is likely focused around a specific topic or industry with a focused, highly-engaged audience.

These are not handed out at random, but rather based on the outgoing and incoming data about each given profile. Although, for some really crazy but totally flattering reason, Klout measures me as a “Celebrity”. Of course, to that I’d say “Heck yeah … roll out the red carpet and pop the champagne. There’s gonna be a party!”

Is That Paparazzi I Hear Approaching, or Just More Naked Coeds Running to Greet Me?

Is Klout Accurate?

Do I think that Klout is entirely accurate? Absolutely not, but I do believe they are doing a good job. One reason is the sheer volume of their data. They are currently compiling data about more than 75 million users, and expect to include information from 20 different networks by the end of 2011. The numbers become more accurate in higher volume, but that is not enough. What about how that data is processed? This is where Klout really stands out, and pulls away from the crowd.

Klout organizes data from more sources and uses more factors than other companies trying to compile and present a numeric score. The broad diversity of data acquisition makes it much harder to cheat a Klout score, and thus, more reliable than other online influence measurement tools. If you have not already done so, it is worth taking a look at how Klout compiles scores. There is clearly a far more in-depth process than what is described, but it will give you a good overview.

Like anything else, Klout can be manipulated for an increased score, but not without a high degree of talent, and significant efforts.

Historical data is critically important in many business processes, but let’s not overlook the value of predictive data. With the right data at hand, I can imagine predictive data becoming a part of the Klout algorithm in the future, as people seek those who are on the rise. Imagine the business value of finding those with high potential who are just not on the RADAR yet.

Is Klout Good or Evil?

Is Klout good or evil? This is a question that it seems a lot of people struggle with about any company which acquires a lot of data. I think it is good, and it helps to meet some challenging needs of businesses and individuals surrounding trust and reputation.

Everybody wants to have influence, but it comes in a package with other factors. Those other factors of trust and reputation are often even harder for companies and individuals to put their finger on. Klout offers some broad insight about an individual and how others view them.

Would I weigh an important hiring or purchasing decision, or a business partnership choice heavily based on Klout? I guess you would have to define heavily for me to answer that, but in many scenarios, I would definitely have to consider it a factor.

Let’s face it, we are each measured every day. Whether it is for the style of our hair, the car we drive, the company we keep, the way we walk, talk, and even how we chew our food. Somebody will always be watching and summing us up. Klout takes it to the social web and makes well-founded estimates about us based on observations.

Perhaps the best answer, for anybody who does not like it, is to consider the other ways in which we are judged based on less reliable factors and guesswork. In the case of Klout, I don’t think it is any more an invasion of privacy or an intrusion than people-watching in a shopping mall.

In the instance of social media, if you are doing the equivalent of standing there picking your nose, somebody will probably notice. In fact, they may even share it on Facebook, and get a higher Klout score for it!

Now if you’d just go and tweet this, Facebook it, give me a Klout “+K” bump for social media, and make a lot of comments about it, maybe I will get that new dreamy offer I’ve been seeking and share some of my Klout with you.

Fine, even if you don’t give me any “K”, I urge you to check it out just to see what Klout knows about you. It may uncover people that you influence and didn’t even know it, or it may introduce you to somebody new to connect with. It’s free, so you don’t have anything to lose, and quite possibly something to gain.

Photo Credits:
Job Interview by Quinn Dombrowski via Flickr
I Made It by Kirsten via Flickr

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Bashing SEO and Social Media Experts: Humor or Hazard?

I had to ask myself whether this is humor or hazard for me to give a swing at our ever-increasing population of SEO and social media “experts”. I guess the idea gave me just a little guilt pang at first, because I always heard that I should treat people the way I want to be treated. Who am I to tell anybody they don’t have what it takes?

Then I grinned from ear to ear, tucked my sweet love-everybody nature back in my shorts, and put my middle finger in the air. After all, this is not “biting the hand that feeds me” … this is harsh and very real truth. This is about educating, and saving a few lucky others from huge disappointments. This is about shining a spotlight on liars. This is a glimpse of reality! In fact, it is a reality that I intend to illustrate for you very clearly.

Are All SEO Liars?

No, not all search engine optimizers are liars. There truly is an enormous value in the trade, but because of that, it has attracted a lot of liars. Any good SEO knows that there is no reason to lie about the service. They may even help you to understand the most common lies of the industry. For example, here are a couple useful articles: “7 SEO Lies: How to Know When the SEO is Lying” or Good SEO vs. Bad SEO: How to Tell the Difference. Each of these include objective means to weed out the liars and cheats.

On the other hand, many self-proclaimed SEO will make claims like the one I found on Twitter pictured below. I am only listing one, but not because I have a problem with this one in particular. I just picked this one at random, but I actually dislike all of the squillion others out there lying to people about SEO. I just don’t want to waste more time making a huge list of them.

The Classic 2000 Website Visitors Per Hour Pitch

Khubah Jogja offers the opportunity to “make money online” and “get 2k visitor per hour”. That’s great, right?! I guess it may sound great, but then I checked out this Twitter user’s website and imagine what I found … some reality! The funny thing is that they actually have their website statistics viewable to the public using a service called “whos.amung.us”.

The biggest hour I found was three visitors, and the maximum visitors in a day was sixteen. In the image shown here, the one visitor represented was me. That is kind of a stretch from 2,000 per hour.

I don’t want to leave this up for too much confusion, so I checked with Alexa, Open Site Explorer, and others. Two thousand visitors per hour was not to be found. Then again I knew that already when I saw the article claiming that keyword meta tags make a big influence in search ranking. Not just that it was total crap, the article was not dated 1998 … it was from this year! If you think that old meta tags pitch is true, it will serve you well to read “SEO Meta Tags: Oh, You Must Be Another SEO Expert!”

Social Media Expert / Cattle Farmer

Perhaps not every instance is so extreme as the social media strategist / cattle farmer depicted here, but I really need to share this with you, because it almost made me pee myself with laughter and sob at the same time!

It is funny, but actually sad when you think of how widely accepted total confusion has become in social media.

I know that farming and ranching is hard work. It is really tough to get ahead in that industry, so why not augment the income and work as a social media strategist? That may just be the perfect fit!

Social Media Strategy ... or Cows ... We Have it All!

Yes, you can call me a jackass for singling this poor dear out. I mean, after all, at least she didn’t use a picture of some young hot chick in her profile, the way so many others do. In fact, she looks downright sweet, and wholesome. She is probably a really nice person, too … but she is also lying to herself and others. Her appearance would absolutely not turn me away if I was in the market for cows and chickens. Social media strategy, on the other hand, requires something other than just being sweet.

According to her website at “Lynda’s Social Media Strategy“ she is suggesting to “Use Social Media to Promote Your Business”. She even has descriptions and very low prices for her services. It includes pricing for a service that I pointed out as an absurdity and largely a rip-off a while back when I wrote “Hourly Rate for Setting Up Social Media Profiles?!”

How We Do it Down on the Social Media Strategy Farm

Contrary to her own advice and service offerings, when I clicked on the social media links on the right side of her page where it says “Follow”, I found a non-existent Blogger profile, the link to edit a LinkedIn account, links to Digg and Delicious (but not to a specific profile), an incorrect Feedburner link, a Facebook personal profile with 28 friends, a MySpace account, and a Twitter account.

Being a social media strategist, you may think she would use social media a lot. She was pretty scarce across the board, but I enjoyed this example. Within the Twitter account, the last five updates included a lot of weather change as follows:

“Snow outside. Good time to do some ghostwriting.” (on 20 January)

Then, five tweets and six months later …

“It’s hot no rain pasture’s drying up feed bill going up everything’s going up except my pay. Oh well…could be worse.” (on 19 July … earlier today)

I thought to myself that maybe she is actually doing what she says, and using her social media strategies for her own business down on the ranch. No, there was not a single social media instance of anything whatsoever at the Belle Manor Farms website. Go ahead … see how Lynda’s social media strategy is working out for her. Check out the Lynda’s Social Media Strategy Facebook Page that I only found after looking it up on her personal Facebook profile (not on her website). Maybe you could give it a “Like” for sympathy, since nobody else has.

Perhaps I’m just not clear on this yet, but it seems that Lynda, like so many others, is struggling with confusion of the difference between social media strategy and social media tactics.

Now Let’s Bash Murnahan

I know I may seem to be a real jackass when I ask questions like “Why Do You Want to Become an SEO and Social Media Expert?”

Maybe I’m just jealous of them for having a lack of a conscience. Maybe I’m bitter with them for becoming experts without actually having to spend decades to learn about marketing. Maybe I’m pissed because they get to have fun jobs outside of the Internet, while I am stuck here all day as CEO of a decade-old Internet company.

Sure, if I could have done it so easily, I would have a lot less gray hair today. Let me explain something for you, though, before you start calling me names.

Just because a person has a new computin’ machine does not mean they have an equal shot at this mythical money generator that people make the Internet out to be.

Just because “everybody” said you will miss huge opportunities by not being on Facebook, Twitter, Google+, and the many other social metworks, it does not mean those “huge opportunities” are what they told you, or that they will come to you without equally huge effort.

Maybe “everybody” was exaggerating just a tiny bit when they said you would “earn millions online … easy … in your pajamas!” Maybe “everybody” was not lying to you, but just made it a little easier to lie to yourself.

There are a lot of damn liars out there on the Internet! Worse yet, the online marketing fields of SEO (search engine optimization) and social media marketing have them breeding like cockroaches. I think that an astonishing number of them are lying to themselves.

I hope you don’t let them lie to you, too. There are no “innocent victims” in these cases, because we each have the same opportunities to gather due diligence. The victims are better described as “ignorant victims”.

So, was it humor or hazard that I chose to share this with you? In my opinion, the humor is that anybody could actually be fooled by such absurdities. The hazard is that such absurdities even exist.

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Social Media History Shows What Success is Really Made Of

History provides some excellent lessons. It frequently tells us what works, and what does not work. This goes for aircraft engineering, brain surgery, particle physics, and social media, too!

Don’t tease me for my aging view of this topic, because sometimes an old-timer may just have something useful to offer. I have been sitting here at my computer for many years longer than your average social media expert, guru, maven, evangelist, or whatever the kids are calling them these days.

I watched Yahoo rise straight out of the dirt where we planted our fax machines and ARPANET, and I used it. I used it a lot, and my friends did, too. We told people about it. Yahoo grew, and relationships flourished.

I remember the days shortly after some bright Stanford University students named Larry Page and Sergey Brinn launched a new website to help make better sense of the growing Internet. It used a sophisticated democratic process to reflect what people like. The voting happened when other people linked to your website, and that process is still used today.

There are a few people who will read this and nod with amusement and agreement, but a lot who will never imagine a scratched MP3, or their mix tape being eaten by a cassette player. If you mention 8 Track or Quadraphonic sound systems, they are lost without those clever Stanford students who had a googol-dollar idea and named it Google.

Old-timers used Google, too, and even long before “google” became a verb, we told people about it.

Whether you consider the examples of explosive growth of social networks themselves, or anything else that becomes successful online, there are some principles which always hold true. Yahoo, Google, Facebook, Twitter, and even cupcakes in Topeka, Kansas all have some things in common. They have each produced something that made people want to tell others about them!

“Webmasters” and Early Online Social Media

In those early days of social media, there was actually a job status of “Webmaster”. It described somebody who had a “mastery” level understanding of the Web, including hardware, network architecture, software, programming, design, data integrity/security, and website promotion. It eventually became too much for an individual human to withstand, and those Webmasters’ duties were appropriately divided into multiple departments, and job descriptions became more specialized.

The early days of “easy online success” faded fast, and before very long, anybody with a Yahoo Geocities account or a pre-installed copy of Microsoft FrontPage Express could tag themselves as the “Webmaster”. The first generations are the people who used to actually spell things without spell check, saw programming code when they closed their eyes, and who stuck their geeky necks out to create and share the Internet as we know it.

Even back then, we had people with exceptional social media talent. They told people about great new things, they shared useful information, and they used each of the things I am about to describe. We just didn’t call it social media, yet.

The Success Tools Changed … The Rules Didn’t

Maybe you don’t think of Yahoo or Google as social networks, now that you have Facebook, Twitter, LinkedIn, YouTube, Foursquare, Gowalla, and a squillion others, plus a squillion-squillion blogs, and an app for everything.

The way I remember it is that I met some of my best friends in Yahoo Chat Clubs, Yahoo Groups, and AOL. Yes … America Online. I met people from all around the world since back in the 1990’s, and we are still communicating on Twitter, Facebook, and the rest of the evolved social networks.

Relationships Thrived When AOL Launched AOL Instant Messenger

Meeting most of my closest friends online sounded crazy to a lot of people back then. It was crazy enough that when I started dating my wife in 2000, we were afraid to tell her parents how we had met. Eleven years, three kids, and a lot of computer upgrades later, we still marvel at the community we built using social media.

If you don’t already know my online career history, my résumé certainly shows that I go way back as a “geek”. During that time, I have witnessed many online success stories. I have been very fortunate to participate in many, as well. So, let’s look at what has been historically successful, and why?

Each of the online successes you have heard of, including Amazon, eBay, YouTube, Google, Yahoo, and etcetera, each had some things in common. The same things that made them successful are the things that create success today … every day. Allow me to share these observations.

Social Media Success Factor One: Usefulness With Convenience

Usefulness and convenience have a huge place in the history of social media success.

Back in the old days, and even more profoundly today, Internet users show a very finicky nature. As the Internet grew bigger, users realized that if they don’t find exactly what they want, immediately, they can find it in just a couple clicks. So being useful, convenient, and worthy of their attention has always been critical to success.

Imagine if Google required you to jump through hoops to get to what you are looking for. They knew better, so they made it as convenient as possible to enjoy their usefulness.

It really doesn’t matter what industry you are in, or what cause you are promoting. Whether you are selling cars, cigars, or surgical supplies, you must find ways to become useful. Being useful can mean that you are helping somebody learn about a topic, learn what they need to know in order to buy something, or just helping them with a hearty laugh to get through the day.

Being useful and convenient are imperative. I often watch whole industries miss this point.

Social Media Success Factor Two: Creativity

Creativity is natural for some people, but it can also be learned and cultivated.

In each of these historic instances of success, there was somebody … one person, who had an idea. They shared the idea with somebody else. Some encountered luck that they shared their idea with the right person with the right talent, but they all started with a single spark of creativity.

The people around the initial spark put fuel on it and blew it into a flame. The importance of creativity, and cultivating your creativity, should never be underestimated.

Talent is something that grows when you express it, and talent can have a huge cost. It is not easy, but if it was easy, everybody would do it. It is worth the effort if you are committed.

There are bright ideas sparking up around the world, every day. If your spark is not the brightest, it will be much harder to build a flame around it. When that is the case, the next step becomes even more important than ever.

Creativity Has Changed Since The Hampster Dance Debut

Do you remember Hampton and The Hampsters back in the 1990’s? They grew up and became more sophisticated!

Social Media Success Factor Three: Relationships

Relationships make or break social media success. The people truly are the most important piece of the big picture. Just as it happened in the days long before our exploration into Facebook Likes and Twitter retweets, people spread things they like and believe in. It happened this way with everything from religious and political beliefs to pet rocks and friendship pins.

This does not mean you need to make pals with everybody on the Internet. Social media marketing success is not just about making friends, but relationships are extremely important. When you communicate and get to know a few people who know a few people, it adds up. Those people who build good relationships often have things in common, including common interests and common thoughts.

If people like you, over time, they may begin to trust you. That can mean they trust your advice, your insights, and your motivations.

Relationships with people dictate a lot about the success or failure of anything in social media … on line, or the old school kind that happens around boardrooms, schools, churches, and elsewhere. The people are who decide if your spark will be fed, or die out in a flash. There are a lot of great ideas which meet the burdens of usefulness and creativity, but without good relationships, they usually don’t make it very far.

Sometimes the relationship is very loose and simple. For example, I wrote this, you read it, and maybe that is as far as our relationship has come so far. Over time, that may change. Maybe you will eventually feel comfortable to share this with others with your tweet, Facebook like, or reference it in your own blog.

The best relationships are a building process that happens over time … often many years. Trust can be improved upon and implied by longevity, but nothing really trumps good direct communications. Each relationship must start somewhere, so it is worth extending your hand. As relationships evolve, treating them like the treasure they really are is hugely important if you ever hope to encounter success.

By the way … if we have a good relationship, could you please tell somebody about me? I am currently looking for a new project to use my useful, creative, and relationship building abilities. If we don’t already have this level of relationship, my hand is extended. Please introduce yourself so we can get started.

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Social Media ROI, Marketing Cost, and the Willingly Confused

Social Media Sends Mixed Signals

Many people have a very confused view of social media, and I can understand why. If you just look at all the ways social media is used, there should be little wonder how people confuse the issues. Some of the most bewildering concerns I notice surrounding social media are the return on investment (ROI) and the cost of social media marketing.

Millions of the world’s businesses understand by now that an investment in social media is vital to their success. Tragically, many of the same businesses are generally clueless about how and why they spend money with social media, and how to optimize their spending for the best results.

These same confused companies are further complicated by misguided notions that social media is limited to, or primarily intended only for personal socializing. They are the companies who question why a business would use Twitter, because that is where people announce what they had for lunch, LinkedIn is just for job-hunters, and Facebook is where old high school friends swap stories. That is social networking, and networking is important, but it is only one facet of social media. If you confuse this, and think that social networking is the basis for social media marketing, you will waste a huge amount of energy trying to sell to your friends, and others who already know you.

Believing that social media is just for personal socializing is a costly absurdity. It is the kind of absurdity that some companies will only discover after competitors have stolen away enough market share to demand attention.

Because of a lot of confusion, some people will say that the return on investment (ROI) of social media marketing is difficult or impossible to accurately calculate. I don’t think that is the case at all. If you have the right variables, calculating the ROI of social media becomes just another mathematical equation. The trouble is that so many people neglect or overlook the measurable data that really counts.

Social Media ROI Causes for Confusion

A first step to calculating the ROI of a social media campaign is to have a clearly defined campaign. That means having a strategy in place, and not just a list of tactics. It means producing a plan with a set of measurable outcomes. It requires creating and collecting customer modeling data, and using that data to reach your target audience.

Read the Social Media Signals

I have read and participated in a lot of conflicting discussions and possible answers about social media ROI, and most of it is very inaccurate or misleading. Many people will intentionally leave it open for a lot of confusion. After all, if people are confused, it is a lot easier to charge them money for things that are of little or no benefit. Calculating the ROI of social media is actually very basic, but that’s not what the failed real estate agent turned instant marketer wants you to believe. If they can convince you to just wait a little longer to see measurable results, they get paid more. Because of ignorance and greed, the debate of return on investment may never end.

In order to try and bring a little more clarity, let’s address two huge variables.

Social Media Branding vs. Increased Sales

Two very popular considerations for growing a business using social media are branding and increased sales. The two should work well together, but let’s face it, a brand can be really popular and still have a bigger drain hole than spigot. Even the most brilliant branding does not always make the sales hose filling your bucket as fast and powerful as the money drain leaving your bucket. There has to be a balance in order for the efforts to be sustainable and valuable to the company.

I find it very common for companies to lean too far in one direction or the other in their goals and attempts for successfully reaching their market. Confusing the value and cost of branding with the value and cost of increased sales is often when measuring social media ROI becomes completely muddled. Producing a balanced strategy is simply not as intuitive as most companies expect.

Building your brand name is extremely important. It builds recognition, trust, and sets your tone among the many other competing brands. It does not always have a proportionate result in sales. If you doubt it, look at it like this: You have probably encountered many great brands via social media, while it still didn’t bring you closer to buying from them.

In many instances, building your brand recognition will seem like it takes on a life of its own. When it gets to a certain point, it will grow and change, even without your input. People will talk about you more, and they will pass along your virtues by way of social media. They share your brand on Facebook, tweet about your brand, and they will become an influence to your brand (if you are paying attention).

Now, what about building those social-media-induced sales? All of the touchy-feely great branding and kind words about you can still lack a good reason to buy from you. There are a lot of companies I really like, but I am simply not their target audience. When I know somebody who can benefit from those brands, I pass them along. The brand reaches their target through me, and others like me, who become their connectors to their ideal target audience.

This is a fantastic outcome, but let’s face it, it is not always as efficient or as easy to come by as you may wish. It takes a lot of effort, and a lot of brilliance to produce a sustainable and self-propagating level of branding. It is a highly effective strategy for long-term growth, but it is also a very ambitious and frightening marketing endeavor in the beginning. Thus, a need for a balance between short-term and long-term marketing strategy.

Social Media Marketing is Branding, Advertising, and Much More!

I believe that some of the worst points of confusion in social media marketing come back to what marketing is, or is not. Both branding (long-term) and advertising (short-term and long-term) are extremely valuable when they are done well, but they require very different measurements to accurately calculate their respective ROI.

Which Way is the Right Way?

Companies often skip steps in their marketing, and then wonder why it is not measurable. This is especially common in smaller companies, because it is nobody’s full-time job to understand, monitor, and measure the company’s successes in this area. Instead, a lot of companies will try and “wing it” by assigning marketing tasks as an add-on to other job descriptions.

This is most profound as it applies to social media, but often because the people actually writing the checks have never had somebody explain the value and potential of social media from a marketing perspective. So they often just pin a badge of “Marketing Expert” on an unsuspecting employee who seems to have some aptitude (has a Facebook account).

When you decide how to set your prices for something, it is marketing. When you perform a market feasibility study, it is marketing. When you accumulate customer modeling data and use that information to better understand what people want and need from your company, it is marketing. When you set up a new Facebook or Twitter account and cross your fingers and hope for amazing business results, that is not marketing. That is dreaming. Dreaming is not measurable, and only seldom is it profitable.

Aside From Being Social, Why Should People Buy From You?

Without an expressed reason for people to become your customer, efforts will generally fall into the category of branding. This includes when they are right there on your blog, where you want them to be. As an example, I use my blogs and social networks for reaching out to be helpful, and that emphasizes my branding. When I say “I take coffee and cigarettes and turn them into better SEO and social media marketing.” … that is my brand. All of that helpfulness and broad recognition in my industry is great. It leads to many opportunities, but it is not what actually makes the sale.

On the other hand, when I say “Call me to find out how I can help you to grow your business with a measurable return on investment” … that is advertising, and that is also marketing, but it is not branding. It is how I earn a living, and it is what improves my social media ROI. The branding is just what makes more people comfortable to call, and confident when they write me the check.

As you can imagine, when it comes to spreading a word far and wide, branding statements and being useful to others will often reach further and faster. This is because they are generally non-threatening to anybody. While, although this information is good food for thought and useful to many, I have already diminished much of its social media reach by making an advertorial statement (above).

Regardless how useful what I wrote here is, many people will be far less likely to share it with others. Part of that is due to cynicism, and part of it is due to competition. It takes a lot of branding to make up for and repair cynicism and people’s disinterest and distrust toward advertorials, even within a useful context. This is why I say that a balance is very important.

If you do not understand and differentiate the value measurements of branding and the value measurements of other areas of your marketing, calculating your return on investment will always be a bit cloudy and confusing.

Am I wrong? Go ahead and tell me why and we will hash it out until one of us agrees. 😉

Related Articles:

Photo Credits:
Confused Traffic Signal by caesararum via Flickr
Confusing Signals by Luis Argerich via Flickr
Confusing Signage by Tara Hunt via Flickr

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Hourly Rate for Setting Up Social Media Profiles?!

My blog is often inspired by things that happen in my real life. It is easier to tell something from experience than to make things up. Sometimes those things which happen in real life make me want to scream! I am going to share a good example.

I received a call from a friend yesterday. My friend was seeking some advice about social media, so I was delighted to provide my assistance. The question created one of those moments when I want to scream, pull my hair out, and choke people. My friend wanted to know how to set an hourly price to set up social media profiles for companies.

The question was important to her, because an advertising agency she works with had come to her asking for an hourly rate to help set up client’s accounts on Facebook, Twitter, and etcetera. She was caught off guard by their request, and so she asked me for an opinion of what it is worth.

My friend is a relatively popular blogger, and avid user of social media, but she is not really in the business of social media marketing. Strangely enough, they thought she could help. Since she does not want to turn away business, I feel for her dilemma. In this case, I suggested that providing a service that creates a zero net gain, or even a loss to the client is a good reason to either further educate the client, if they are open to learning, or to walk away from the offer.

I suggested that an hourly rate for setting up social media profiles, as with any other marketing or public relations service, should have a basis in the value to the client. In this case, the value would be minuscule, if not negative, and I explained some reasons this is the case. Of course, it began with the logic that any company who needs somebody just to set up their profiles is not likely to use those profiles for any significant benefit.

Creating social media profiles has extremely low value without a strategy, and without the manpower and mindpower to use them well. If they had that manpower, and more importantly, the mindpower, they wouldn’t need my friend at all. It all got me to thinking that it is like a dog chasing a train. What will the dog do if he catches it? The dog doesn’t know, and so the dog will not get much benefit from the chase.

I want to tell you a couple reasons this is a formula for failure.

Social Media Profiles Do Not Provide Value!

I understand that this may not make perfect sense to everybody, but I am going to try to make this easy. Sure, there are a lot of people who do not know how to get their name on Facebook, or how to create a Twitter username. My mother would not have a Facebook account if I had not set it up for her. My mother is not running a business and trying to promote her name, either.

Think for a moment … If my mother was in business, would it make sense to have somebody set up her account just so she could say “I’m on Facebook and Twitter”? What good is that? Is it so that people who already know who she is could magically flood her with new business? Why would they do that? Let me tell you the truth about this … They won’t!

The value of social media comes when you actually give people a reason to chose your company over the squillion other options out there in the marketplace. If you don’t have a clear reason for people to choose you over a competitor, or to recommend you to their friends because your company is awesome, what is the point? Is it the visibility that is so enticing? I want to assure you that there are millions of visible people who are failing in business. Having a social media profile is not going to make you more successful, and is very unlikely, in itself, to make you more visible.

A lot of people obviously do not yet understand that social media profiles are not going to spew crude oil or reveal a hidden gold mine. Perhaps everybody around you says “You have to be on Facebook” or “There are people making tons of money on Twitter.” The thing they don’t tell you, and probably do not realize, is that social media is not like a Hollywood “Field of Dreams” method for easy success.

This mentality is something I really try hard to understand, and I even try to be compassionate and patient about. The challenge is that when I explain it to people with solid proof, but they still have to learn things the hard way, I end up feeling bad for not having the strength to help them. That is crazy, right? I should not feel guilty for other people’s unwillingness to believe the truth, but I still do.

What About the SEO Value of Social Media Profiles

A lot of people seem to be convinced that there will be a big SEO (search engine optimization) benefit by having a lot of social media profiles. Social media can have an amazing impact on search engine rankings, but it is not why some people think, or hope, or would ask you to believe. The benefit comes when social media is used well, and more of the right people learn about your offerings and share it across their networks and link to your website from other places, such as their blogs and websites.

I understand how the false notion can seem almost logical, because each of those social media profiles will have a link to their website, and more links are a good thing.

There really is a lot of SEO value in social media, but it takes more than just setting up unused profiles. Otherwise we would all be in a race to have the most social media accounts. Some people are, but not the wise ones … not the informed ones. If you ever actually thought that the SEO comes from unused and unknown profiles, think again! Of course, most of the people seeking to pay for such a service would never take the time to read and learn about this, but for your amusement, I offer you some articles on the matter as follows:

100 Social Media Profiles or 1,000 … How Much Do You Want to Waste?

There is a constant pipeline filled with desperate companies hoping and begging for a quick and easy fix to increasing their business’ profit. However, with each company that sets up their social media profiles and endures the failure of short-sighted thinking, comes dozens of their friends and colleagues who will learn from their failure. This means that the pipeline will eventually slow down, and people will have to start thinking before they earn.

When Marketers Sell Negative Value, They Destroy Their Own Market

There is a rule in marketing that a lot of people try to overlook, but it is to their eventual regret. Regardless of the client’s request, it is the duty of a marketing professional to be sure that the client receives more value from the relationship than its cost. This goes for advertising agencies, independent marketing consultants, and in-house marketing departments.

The rule works like this: If the client / company receives less value, in the way of increased business, than the cost of the marketing efforts, it is not sustainable! Trying to work around this rule is like rubbing a lamp and hoping that a money genie will somehow magically come and make up for the screwups.

I realize that the conventional thinking is to give the client what they ask for, and to take their money. I see that as a huge mistake, and proof of a marketer who does not adhere to the same standards they expect of their clients. Good marketing consultants help clients to maintain their marketability and to avoid taking hazardous shortcuts. If the consultant just takes the money and gives a client what they ask for without questioning it, they are not doing their job.

As long as people are set on believing the myths of social media rather than the truth, they may as well say a toast to their own failure.

My Answer to This Question

My answer, if somebody asked me how much it would cost to set up their social media profiles would be something like this:

It will cost a bare minimum of $5,000 per month, and quite easily over $25,000. It will come with a whole lot of market research, strategy, implementation, and a well-forecasted return on investment. That means it will pay you a lot more than you pay me, but that is only if I believe in your company enough to hang my reputation on it. That does not happen with companies who are resigned to believing that simply “being on social media” will increase their profit. Thank you, but no thank you.

If you run your business by placing cost above value, you are making a big mistake. Instead of pouting about how much a successful marketing campaign will cost, it is better to focus on how much it pays. Then the more important factor is how to get your hands on the money it will take to achieve the results you are after.

Related Articles:
Yes, I put these here for you to read. I think they can help to emphasize why simply setting up social media profiles without a good strategy is a waste of time and money. You already have an idea whether you can afford me or not, so don’t worry … I am not selling you anything, and my prices will not go down just because you read more of my blog. Enjoy!

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