Guest Posts

How to REALLY Measure the ROI of Social Media

This is a guest post by Eugene Farber.

“How do you measure the ROI of your social media efforts?”

It’s a question being discussed ad nauseum of late, and rightfully so. Social media investment is a legitimate issue that businesses have to face, now more than ever. So, being the problem solver that I am, I decided to figure out how to measure the ROI of social media once and for all.

The quick answer is there is no answer!

If you want a long-winded explanation, read on.

Enough “Whys” Already!

For my first stop on the way to figuring out how to complete this elusive calculation I went to all of the usual suspects.

What I discovered actually got on my nerves a little bit. There were no concrete answers. For all of the promises of “how-to” in the titles, all I got was “why.”

Why you need a strategy before entering the realm of social media.

Why you should use social media to begin with.

Why you should measure the ROI of your social media campaigns!

…OK great! But how?

Some Actual Value…

Luckily my next stop resulted in some actual numbers. This was it! I was finally going to figure it out!

To prove that social media provides a great return on investment (if used properly) The Next Web published 10 case studies on the ROI of social media. These are gleaming examples of social media done right. Case studies which every company should take as an example and follow suit.

Social media management firm Syncapse took it one step further. They recently conducted a study and concluded that the average Facebook fan is worth $136.38.

Now I just have to figure out how to get a lot of Facebook fans and I’m ready to retire!

The Caveats

The Syncapse study is utterly useless. To perform the study they used a selection of companies that are not representative of the average small business. Even Syncapse, within the study, states that no two fans are the same. Well no two companies are the same either. There are too many variables to make the $136.38 figure mean anything significant.

Plus, that takes care of the return part. What about the investment?

Sure Facebook is free, but someone has to run the page and the campaigns on there. How many man-hours does it take to keep those campaigns working. How many man-hours does it take for large companies like Starbucks to keep the customer engagement going?!

The “ROI from Facebook Ads” case study mentioned on TNW (originally published on Search Engine Journal) begins to explore the actual investment part of the calculation. But they still fall short.

The dollar cost of Facebook ads still doesn’t tell me what the REAL investment was. Hours of research to figure out how Facebook ads work? Keyword research? Ad design? Maybe even hiring a consultant to do the work for you?!

Strictly measuring ROI in terms of dollars spent on ads doesn’t really give you a true representation.

Attempting an Actual Measurement…

A recent post written by Jay Baer of Convince&Convert is probably the best summary of actual ROI measurement I’ve seen. The post focuses on the ROI of blogging but can be extended to any social media activity (and really any activity in general).

The first step is to identify what activities you (or your company) is performing and what it costs. Consider all costs including salaries, direct expenses and overhead. If you want to get really fancy (and I know you do) you may want to take into account the opportunity cost of time spent on these activities and what you could be accomplishing with those resources.

Once you have an idea of what your costs are you need to figure out what the return on those activities is. To do this you need to figure out what your revenue-producing actions are (what behaviors your customers can exhibit to drive revenue). Is it blog subscriptions? Is it opt-in subscriptions? Are you just focusing on sales?

As you can see the actual calculation is simple, but not easy. There are many variables to consider and the outcome of your ROI test greatly depends on which factors you focus on.

For larger companies the ROI becomes even more of an estimate because overhead allocations are often subjective. This also means that departments have to get together and interact (i.e. marketing and accounting departments). And how often does that go smoothly?

But even if you do get of that straightened out, it may be impossible (or at least very inaccurate) to measure true ROI in a short-term time frame.

Are We Asking the Right Question?

Gary Vaynerchuk has made a hugely successful business through social media engagement. He has made an even bigger business by promoting the idea of social media engagement.

As he points out in his book?The Thank You Economy, it is the businesses that don’t begin to engage with their customers on a personal level that will fall to the wayside.

People born today are born in to a world that is connected more than ever before. By the time they are consumers they will expect connecting and interacting with businesses to be easy.

This may sound ludicrous, but Gary V believes it to be true. And who am I to argue with Gary V?

My grandmother never had a computer.

My parents are now using the internet for purchasing, yet they tend to stay away from the social network scene as much as possible.

I am in my mid-20s, on the cusp where the social media outbreak occurred.

My kids will be born into a world where the President of the United States having a town-hall meeting over Twitter would be a thing of the past (the effectiveness and legitimacy of said meeting is a debate for another day).

The evolution is clear. And in a world that is evolving faster than ever before, maybe our questions should be evolving as well.

Are We Measuring the Right Metrics?

Maybe the answer to the question is no. Maybe the ROI on social media engagement doesn’t even matter at this point.

Perhaps it isn’t the ROI of social media we should be measuring, but rather the LOLOI – the loss on lack of investment (yeah…I just made that up).

How many potential customers might you be losing if you aren’t engaging in conversation with them? What if your competitors are engaging them? People would rather buy from people they like and can relate to. With social media even the biggest corporations can become more personable.

So at this point the wiser question might not be “what is the cost of implementing a social media strategy?” but rather “what is the cost of not implementing one?”.

A Learning Curve

In truth the investment, and the return, does matter. It doesn’t make sense to pump resources into social media if you can’t afford it. If all of your resources are getting sucked up by social media and not enough are being put into actual business operations then you have a serious problem on your hands.

But it is important to note that social media tools are just that…tools. And the magic isn’t in the tool, but rather how you use it. It doesn’t have to cost an arm and a leg, but it does take some practice.

There are certainly learning curves when it comes to using social media. And each individual and business has its own.

But it may be a good idea to get in now, while it is still early, to perfect the craft before it becomes an absolute necessity.

The Conclusion

There may not be a simple answer to measuring the ROI of social media because there are too many variables. And each individual and company needs to figure out which of those variables they need to focus on.

There is definitely no blanket one-size-fits-all answer. But just because it may not be easy to measure the ROI of social media, doesn’t mean you shouldn’t attempt it.

Go for it. Play around. Test different variables. Finagle some numbers.

And remember…the ROI of social media might not even be the right thing to measure.

About the author:?Eugene Farber is an accountant turned internet entrepreneur. He blogs about internet marketing, business and life at?Reality Burst. Visit his site today for a free?Social Media ROI checklist, and connect with Eugene on Twitter?@EugeneFarber.

image: Leads United
image: Debs

How to Build a Media Empire From Your Bedroom With Just a Laptop

This is a guest post by Niall Harbison.

The media landscape is changing right in front of our eyes – we have moved from a world where large organizations controlled the media we consumed to a more democratic time where everybody has a voice. Because of the huge shifts in technology, anybody can start their own media empire with a small amount of money, lots of drive and a creative mind.

Two of the biggest examples are Techcrunch and Mashable which were both started by individuals in their own homes and in less than five years have each become worth close to $50 million. So how would you go about creating your own little media empire and what are the barriers to entry?

Find A Platform

Even the biggest blogs and news sites in the world these days are built on free platforms like WordPress, Blogger or Tumblr. Whereas in the past you needed an expensive printing press and had huge overheads you can start your own site within a couple of minutes absolutely free.

If you are getting a little more serious about things you might need your own domain name, a professional template and some hosting but you can be up and running for less than $500. Three or four years ago you needed more technical knowledge like HTML and CSS but the platforms are so good now that all you really have to focus on is creating great content and growing an audience.

Identify Your Niche

There is lots of competition online with plenty of people churning out content trying to grab an audience so you are going to have to find a niche and really focus on it. You are going to have to find something that you are extremely passionate about and stick to that. The biggest, most acclaimed blogs on the Internet are written by people who have huge passion for their subject.

While it might be tempting to drift off topic and cover a wide range of subjects you will get more traffic and a bigger audience in a shorter period of time if you remain focused and produce excellent content within your niche.

Growing an Audience

If you wanted to build you authority in old media it meant finding a job at a publication that already had an audience and piggybacking off them. If you are starting out on your own you are going to have to grow your own audience from scratch, which seems like a daunting task, but the good news is the tools are there to help you.

The first thing you will have to do is grow huge personal brand. Look at Pete Cashmore at Mashable, Mike Arrington at Techcrunch or Arianna Huffington at the Huffington Post and you can see how important the personal brand of the founders is.

You can do this through tools like Twitter, Google + and by engaging with other bloggers within your niche – this is absolutely vital if you are to succeed. This part is going to take time and you will be writing posts that only have a handful of readers at the start but over time your readers will grow. Don?t expect to get much traction within the first few months and expect to put a years hard slog in to growing your audience at the very least.

There are no short cuts to this part. No magic tricks to get millions of readers. It is all down to pure hard work.

Using Rich Media

Not only do you have a free blogging platform to use but you can also embed all sorts of rich media. With over 200 million blogs in the world you are going to have to make your one stand out from the crowd and using tools like video, audio, photos or visual designs is a great way of doing that.

There are 100s of different ways in which you can use video, for example, and platforms like Youtube are not only free but will also help you get some great exposure. Maybe you could start your own podcast using software like Audioboo or a simple photo blog using the 100s of different options out there.

Build Your Network And Absorb Information

Just like a journalist would build up their contacts and their sources you are going to have to network your ass off. The old way would have seen you shaking hands and swapping business cards in the real world but now you can do it all online and all you need is a laptop and a WIFI connection.

Start talking to the people who are influencers within your niche online. You can watch most press conferences online these days and let people know that they can share information with you that you might publish. Use tools like RSS and Twitter to get the latest news and spend time setting them up properly with as many sources as possible.

You are going to have to become a sponge to absorb as much information as possible but luckily the web is full of it so it?s just about how efficient you can be filtering it all to your own personal needs.

Work Hard, Publish Regularly And Think Big

Once you have all the elements in place above all you have to do is work harder than everybody else to make it to the top. There are no secret shortcuts or fancy tools that will help you achieve your goals overnight. It is going to take you a couple of years to get to the top but if you keep on producing content on a regular basis, create a huge network and stand out from the crowd there is no end to what you can achieve online.

You don?t need much money at all to get started and if you think big and aim for the top there is no reason why you can?t get there. Most of the media companies and blogs selling for $50 million started off in a bedroom just like you could with a laptop, an Internet connection and some big dreams.

Go for it!

About the Author: Niall?Harbison is the Co-Founder of?Simply Zesty,?a social media agency which has grown to 27 employees within 2 years and has a wide range of large international clients. The company blog shares social media tips, news and case studies from around the world. You can find him on Twitter?@niallharbison.

image: joeldinda

Danny Brown Called Me a Dilhole Or How to Find the Secret Sauce

This is a guest post by Howie Goldfarb.

But he also invited me to guest post for which I am flattered and honored. Not sure which I feel more honored and flattered about. Obviously Danny doesn’t care if you like him because he invited me to write this post!

So, this is for you:

Do not follow, read, attend webinars, or conferences by ‘A-Listers’ if you want to learn how to market products, services, or brands.?

There – I said it. Hey A-Lister! I am telling people to ignore you! And I am correct in saying this. You have nothing unique to offer me, or my clients. Because you are an A-Lister, everyone knows your ‘insights’.

How am I going to set myself apart, or my client or brand or product if I am using tips from you? Where is the secret sauce? Everyone is reading you, following your tweets, etc, and thus using your advice for good (or actually often for bad). Your sauce certainly is not secret – it’s just sauce. It’s Ragu vs. what Momma used to make.

First it was about Fans and Followers. Everyone should have a Fan Page. A Community. A Blog. Yet none of these ‘secrets’ have led to Brands or Businesses separating themselves and making a ton of money.

Don’t get me wrong – I am okay with you, ‘ahem’, A-Lister making money for yourself. But you are not the marketing A Team. You are NOT who the CIA sends out to take down Bin Laden. If you want the real A Team, see who comes to this blog, or Spin Sucks, or The Sales Lion?and participates.

Don’t you want insight that only a few people have?? The real secret sauce? The goal is to crush your competitor. Not to be like your competitor.

Do you really think A-Listers would share their secret sauce with you if it really worked? Don’t you think an A Lister would make a gazillion dollars if they could seriously show, say, Pepsi how to trounce Coke vs. telling everyone their ‘secret’?

Don’t people pay big bucks and compete like crazy to get into an Ivy League or similar B-Schools, so they can learn the secret sauce? Thousands and thousands of dollars to have that edge, yet you can buy a book by an A Lister for $25 instead and be just as good? Are you nuts?

Think about what will set you apart. Because you want (need) to set yourself, your brand, your product or your client apart.

Because that is what the secret sauce is about. And you’re not going to get that for $25.

image: All Chrome?

About the author:?Howie Goldfarb?is president and CEO of?Sky Pulse Media, an agency focused on helping clients achieve outsized results in measurable bottom-line-impacting ways. He had a 14-year career in direct B2B sales before deciding to lighten up his dreary work life and move into advertising. Follow Howie on Twitter at @skypulsemedia.

The Social Media Pedestal

This is a guest post by Bill Dorman.

Okay, I was going to jokingly say Michelangelo must have had me in mind when he sculpted this; but then that might imply I’m old and my FedEx?package could have been sent via regular mail instead of shipped. Now we wouldn’t want that as a persona, would we?

Throughout your life, somebody somewhere is always looking up to you; and sometimes it can create lofty expectations. Do you want to be there? Is it deserved? What responsibilities come with that?

This post is a reflection of the?admirations?and?criticisms?that occur in the social media world.

What are you trying to achieve?

You got into the blogosphere for a reason. Everybody has their own reason but I’m guessing it wasn’t to be a?lump?and just sit around without exploring or growing, right?

It appears most are hoping to monetize in some way whether directly through their site, or one-off in selling their knowledge or services.

Guess what, to do this you have to expand and grow your network, build your community as they ?say. The more you are involved in growing your network, the more?visible?you become.

I think they like me

Most of the time it is a virtual love-fest in the comment section of blogs. Everybody is gushing how great the article is, how great the author is, how their breath can’t possibly stink, etc. Typically, everyone only sees the ‘good’ you. Can you see how easy it would be for an outsider to assume your community has placed you on this pedestal? Maybe you even start to believe the hype; did you just breathe into your hand to check your breath?

My wife reads my blog from time to time and jokes about how much everyone seems to adore me and all the back and forth thanking that goes on. She said, “Yeah, let them live with you for 30 days and see how great they think you are.” ?I’m sure she says it in jest, ?but I do see her point.

Don’t get me wrong however, I like the compliments. For some this is the only payment received, so of course they like it; it’s validation. However, it’s only healthy to keep it in perspective and stay as grounded as you can.

Lofty height indeed

As you progress up the ladder, based on whatever measurement of success you are using, you put yourself out there for all the world to see. Your comments, strategy, your whole demeanor is subject to review, criticism and debate.

You do have to develop a thick skin, but do you think it also changes who you are? Does it matter?

Make no mistake, all things are not created equal and there are different rungs on this ladder. This hierarchy is real and to say otherwise would be naive.

You do seem different

Typically success increases your activity; and this requires more time. Because of this, the way you interact now can look different than it did when you started. This doesn’t necessarily mean you’ve changed per se, but you did change. Some people will resent your success and could be jealous; not everyone will be happy for you to succeed.

Is this the least of your worries?

You can liken it to the corporate world where you have a group of buddies (equals) who hang out together and one of them gets promoted to manager. Suddenly the dynamics of the relationship just changed, and it is different.

It’s still just me

People who want to be successful tend to be competitive. Success can bring recognition and sometimes it might appear you are on a pedestal for all to see. Leaders frequently assume this position.

Whereas success brings more attention, don’t be so quick to build someone up to be something they didn’t ask to be.

Keep that in mind in the way you might challenge someone, until you’ve walked a mile in their shoes. Just because they have had some success shouldn’t make them an open target. It’s all about respect and common decency.

Also remember, once you’ve been placed on a pedestal there is only one way to go. I mean look at that naked dude up there, you don’t think people aren’t laughing at him?
You think you want it, but are you ready for what it entails when you take that ‘step up’?

About the author: Bill Dorman is a blogger who enjoys networking and adding value to his relationships. He is an insurance broker by profession. You can find him any day at Bill Dorman, The Invisible Blogger, where all strays are welcome and you can even subscribe to his content. Follow Bill on Twitter at @bdorman264.

A-Listers Behaving Badly

This is a guest post by Neicole Crepeau.

Last week I inadvertently stepped into a hornet’s nest on my blog. I publicized some SEO practices that I had been unaware of, including the fact that they may be taking place on a major blogger’s site (unknown to him, I assumed).

The response from that blogger seemed to me out of all proportion. He threatened me with a lawsuit, resulting in my taking down the original post.

His response to this perceived, but unintended, criticism struck me as such a contrast to the response I received from the Triberr guys to a blog post here on Danny’s blog. In that case, I actually did criticize a feature of their product.

Yet these two young men, Dino Dogan and Dan Cristo, were totally professional and courteous. They engaged in an open debate about their product and politely disagreed with me.

It seems to me that some of the supposedly seasoned A-listers could take a lesson from the young bloggers about how to handle criticism.

When I blogged in May about why I’m hesitant about Triberr, I criticized the product. Dino and Dan came on the blog to respond. Dan actually thanked me for the post. Dino engaged me with counter-arguments, and we had a reasonable debate on Danny’s blog.

It never got personal or nasty. This despite the fact that I had made a mistake in my discussion about Triberr, saying that it tweeted links more than once per user account. Dino just politely corrected me. He didn’t threaten to sue me for misrepresenting his product.

When I published my controversial post last week, I let the two people I mentioned know that I had blogged about them. It seemed like the right thing to do. Common courtesy, so they could respond. Plus, again, I assumed that this major blogger might want to know about these shady SEO practices that were surely affecting his blog.

Unfortunately, he was on the attack from the get-go. There was no courtesy, a lot of assumptions about my motivations, and very quickly threats.

Apparently, he has handled product criticism similarly. A year ago, on a negative review of his Scribe SEO product, his very first comment invoked the word “libel” and he proceeded to threaten a lawsuit. Contrast that with Dino and Dan, who have handled even negative Triberr reviews in a polite, professional way–and updated their product in response to it!

This blogger who bullied me online actually wrote a well-regarded post urging people to be courageous bloggers. He said “You need the courage to alienate the wrong people in order to resonate with the right people. You need to stick to your convictions when people tell you you?re wrong simply because your knowledge doesn?t mesh with their opinions.”

I’m taking his advice.?That’s why I have republished my post, including the original comment thread and the tweets that followed. Because I better understand some of his concerns, and in order to protect some commenters from his potential bullying, I have removed people’s names.

This man is not alone. Other A-list personalities have become immediately defensive and intractable when their practices were questioned. I’m not the only one who feels that a lot of the biggest personalities are not open to honest questioning and criticism. They tell their clients to handle criticism gracefully, to not get defensive, to listen with an open mind and respond thoughtfully. Yet, they don’t practice the same techniques for their own brand.

These days, if you criticize an A-lister, you are apt to be labeled and dismissed as a “hater.” Disagreeing is not the same as hating. Criticism is not always mean-spirited. Democracy is built on the willingness of people to speak out, even when their opinion is unpopular, and for all of us to debate the issues openly. Shouldn’t our larger social media community be built on the same principles?

So, how about taking a step back, A-listers? I bet you’d like everyone to remember that you’re a real person. We’d like you to remember that we are, too. Don’t assume we little guys are out to get you. Don’t assume we’re criticizing you just to get attention and link-bait. We’re not all that jaded and cheap. I know you get a lot of crap at your level and it’s probably hard to assume the best of people. But please try.

Take a lesson from the young dogs. Assume the best of us, participate in discussions, politely disagree, and please don’t use your size and status to stifle any discussion.

About the Author: Neicole Crepeau is a blogger, columnist at?{grow}, and the creator of?CurateXpress, a content curation tool. She works at?Coherent Interactive?on social media, website design, mobile apps, & marketing. Connect with Neicole on Twitter at?@neicolec.