How to optimize the ROI of social networking

1. Know Your Target Audience

- Digg, YouTube, Facebook, Twitter and LinkedIn all offer different advantages to a small business.

•  Know which outlet is most effective for your message and audience
• Start a blog, or comment on other blogs to contribute to what those in your industry are saying
• Share videos like "how-to" clips or tours of your business. Join groups like Google Groups, Yahoo Groups or industry-specific sites that are related to the products or services you offer

Yahoo! Answers and Linkedin Answers are great outlets for service-based business, as they allow you to establish yourself as an expert in your field. Matt McGee of SmallBusinessSEM.com wrote a great blog post about Yahoo Answers to get you started.

2. Get Started…Without a Financial Investment

No one can argue the fact that time is money. If you are like most small businesses with few-to-no resources, you can still participate by simply listening. The cost is minimal and the payoff can be great. You can listen to what people are saying about you and your competitors. You will learn what people dislike about your products and services and see if anyone is providing suggested improvements. You may even find forums where people are giving you some of the best testimonials you have ever heard, but you have to be listening to hear them.

Marketing Pilgrim has written a Beginner's Guide to Social Media Marketing that will help get you started. Also, read Chris Brogan's Social Media Power Secret to learn about where to listen.

3. Maintain Your Commitment

Being available and engaging with your online audience is essential. All your online communications define the level of success you'll have in your targeted community, including the personal touch you put in your:

• Blog posts
• Blog comments
• StumbleUpon reviews
• Twitter tweets

If you create a blog for your company, post regularly and respond to comments. Give your blog a personality and make sure it's not just another place for your press releases.

If you choose to join Yahoo Answers, StumbleUpon, Digg or any other sites, just be active and participate. The worst thing you can do is blatantly try to market your company, and the best thing you can do is simply be part of the community.

Twitter allows you to communicate up-to-date news about initiatives, interactive support for customers, and is an open forum for discussion. Being transparent with your business motives and happenings allows for more consumer trust and builds a relationship founded on the belief that you're always available.