Create a Social Networking Site and Monetize it

It has been a long time without posting here. At rSitez, we have used this time to cotinue improving our product (the more flexible and robust out there) and developing all the custom applications that our customers have been demanding…. busy and fun times!

It seems as if everyone is talking about social networking these days, whether it’s using Facebook, Twitter or LinkedIn, just to name a few.

These networking sites are answering a need that people have to connect with others and share news and information.

Although many individuals have taken advantage of social media, companies are also finding that social media can provide efficient ways to target and build a relationship with their customers.

While most companies have websites, particularly large and medium sized companies, the information on websites is often static. It doesn’t change often, and it doesn’t offer an opportunity for interaction.  Some companies have added blogs, which can increase readership.  But even blogs don’t always encourage a robust two or multi-way conversation between interested parties. 

Businesses are also putting up Fan Pages on social networking sites like Facebook, which does allow for more of a free-for-all conversation, but doesn’t allow a company to really target and market to a specific group.

One new type of program that has a leading edge is what www.rsitez.com  is offering.

By combining the attributes of a traditional website and the fluidity of a social site, rSitez lets businesses build a community of interested consumers.  The consumers can then talk with each other (and company members), share events, blog, participate in forums and in general, form a group of members that build an interest in your product.

 Another benefit rSitez offers is the ability to monetize the site.  Businesses can get paid for using ad words.  They can make money also by charging fees for membership, for special reports, or for products.  Nonprofit organizations can set up their site to accept donations.

 For a growing young business, rSitez provides a way to start a viral marketing program that involves your customers and creates a strong following; all while helping your business make money.

That’s the question Citibank asked in a recent survey and the answer it got?  No.  Many small business leaders said that they did not see results from their efforts on social media sites such as Facebook and Twitter.

Over 60% of the 500 respondents said that social networks did not help generate leads.  Only 12% found social networks somewhat or very helpful, and 13% said they were not very helpful.

Why does it seem to be all the rage for larger organizations, but not so much for smaller ones?  Here are some of the stumbling blocks that small businesses may have when it comes to social media.

1. It takes time to get results.  The whole aspect of social media is about building relationships, and that can’t be done over night.  If a small business starts a Facebook Fan page or a blog and hopes for immediate results, she will be disappointed.

2. It takes up time.  Small business owners have a lot to do just in running their business.  Building and maintaining online social networks takes time and consistency.  And, unlike larger organizations with more staff members to delegate to, in a small business, it’s hard to let someone else convey the corporate message.

3. It takes resources. Not only do small businesses need manpower to handle the online communication, they also need sources of information and research in order to establish that role of a “thought leader.”  Large companies can do surveys and hire researchers to write innovative white papers, but with their limited budgets and staff, it’s more difficult for small businesses to offer new and fresh information.

4. Some businesses may make a half-hearted entry.  For the businesses that are doing social media because they are “supposed” to, it won’t take much to convince them it won’t work.  The company president may have a LinkedIn.com account, but has few connections and doesn’t strengthen those or build more.

5. Lack of hard results.  It’s true.  Most of the stories of success using social media are anecdotal.  Factual, but not always in hard numbers.  So it’s difficult sometimes to show the actual benefits of using it.  How do you know, for example, that a potential customer decided to call you because he saw you on Facebook?  Can you measure the amount of people who developed a favorable impression of you after reading your blog?

Despite the negatives from this survey, social media experts are sure that small businesses can benefit from this form of marketing.

Mashable, a website specializing in social media, countered with several examples of small businesses that have seen sales growth and increased brand recognition through their social media efforts.

Other examples abound throughout the Web, from the success of Chicago’s Sprinkles Cupcakes on its Facebook fan page to the non-profit organization Epic Change and how it effectively used social media for fundraising.

But maybe there’s another option.  Maybe small businesses could use a different type of social networking system that’s more tailored to their size and need for flexibility.  rSitez, a software development company, helps entrepreneurs and small businesses create their own social networking sites by taking the best attributes of the popular sites and blogs and tailoring it to the individual company’s needs.  In effect, they create a community for each company, making it much simpler for businesses to reach their target audience.

Where are you on the social media spectrum?  Have you been using it for years?  Thinking about testing the waters, or somewhere in between?  What results have you seen?