Category Archives: Twitter

Two Ways to Make Money – Email and Social Media Marketing

The chicken or the egg?

Many Social Media pundits have stated that “email is dead.”    Social media applications like Facebook and Twitter have killed email.

With 500 million users on Facebook it may not be a stretch to understand why all the “Chicken Little’s” are going around the chicken coop yelling “the sky is falling!” on email marketing.   But Chicken Little was wrong, and so are the “experts.”

Email marketing still makes money in a relatively low cost way.   There are numerous online vendors for small and medium size businesses which offer free or low cost email marketing tools that include analytics (so you can see what works and what does not work).  I use MailChimp which promises it is always free for less than 500 email addresses, and I’m quite impressed with its abilities and the staff’s responsiveness.   One great thing about MailChimp (and a competitor, Constant Contact) is that both have recently integrated Social Media into their offers. Constant Contact announced Social Stats which tracks Facebook “Likes,” tweets, Linked In posts and such.  Social media statistics are shown on the email analytics report.  With MailChimp their social sharing tool lets you post your email marketing campaign on your social  networks with one click in your campaign dashboard.  Be careful, though.  Social Network users HATE “sales pitches” and you can destroy your credibility.   Like Constant Contact, MailChimp lets you you can track the activity on those networks, too.

I’ve mentioned Constant Contact and MailChimp which are great for small and medium size companies, as is iContact.  There are even more out there:  AWeber and Vertical Response are two more.

According to Forrester Research, email marketing is growing, not dying. 

Considering that you can email for free (MailChimp) then Forrester’s research should impress you that you can indeed make money via email marketing.  Their research shows that ROI is two to three times higher with email marketing than with any other form of direct marketing.   Two thirds of the marketing executives interviewed concurred that email marketing is the most cost-effective marketing tool they have.

So much for the death knell!

Far too often techno-geeks (and hey, I like to think that I AM one) decry the death of a technology when something new comes along.  Fact is that it takes a while to kill things off.   There are still people using land line telephones, TVs with picture tubes, and even horse buggy whips.   Direct mailers still “snail mail” catalogs.  Billboards still blight our nation’s highways.  Newspapers still get printed.

So, no, email is not dead.   When it comes to making money with technology, email (with opt-in permission so that you are not SPAMMING) is a very efficient way of communicating sales or new offerings to your customers.

Social media is a fantastic communications media, but it is not meant to be a sales tool (well, not directly).  If you pitch a sale on Facebook you are likely to get flamed and slammed.  Social media is all about conversations, and if along the way people come to hear of a great new product, and buy it — terrific!  Yet, Facebook and others are more likely to be a passive, indirect sales channel rather than an immediate one.  The only difference is an entity like Dell Outlet who may tweet a special sale on Twitter — but most of us are not Dell.   You have to be in a unique position to be able to use Twitter or Facebook as a sales platform directly.

Email marketing and social media are not an “either / or” decision of email OR social media for making money.  Email marketing is still a very strong approach for staying in touch with customers and cross-selling and up-selling into your base.  Social media is a wonderful way to stay in touch more often than you can via email (without irritating your base).  Both are complimentary if used properly, and the email marketing tools with their integration efforts can help you do that — as long as you abide by the “rules” of both email marketing and social media and enhance your customer’s experience.  Don’t over stay your welcome in either venue.

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Three Ways to Make Money with Web 2.0

I do my best to post every few days, and it has been more than a week since my last blog.   I have a good reason.  I’ve been busily creating a new website for SME, Inc. — Social Media Excellence in Orlando, Florida.    I’ve also moved my blog to the site, and the new address is .   If you’ve been reading this blog, or my blog in IT Toolbox or Blogger, hopefully this will be the new “permanent” home for the blog.

I’ve been digging deeper and deeper into social media (Facebook, Twitter, and other methods of online conversation) and have found mostly anecdotal assurances that companies can reap much higher new sales revenue with much lower investment by using Web 2.0 tools such as these.

Believe it or not I actually am from Missouri, the “show me state” and it is hard to believe these claims without some sort of proof.   We’re pretty graphic “down home” and an old saying comes to mind:  “With all this manure, there must be a horse in here somewhere.”

McKinsey and Company is considered a top notch consulting company and they recently did some research on the topic of ROI with Web 2.0 efforts.  The results are pretty surprising.

69% percent of companies that have made some sort of Web 2.0 investment reported real and substantiated business benefits, including more effective marketing, better collaboration and a reduction in the cost of doing business.

“How companies are benefiting from Web 2.0: McKinsey Global Survey Results.” is the source.  This survey examined 1,700 executives from all over the world.

The top three ways to make (or save) money using social media were:

  1. Faster job completion by improving the speed to access information (68 percent of respondents averaged a  30 percent improvement, which is substantial);
  2. Lower communication costs (54 percent of respondents with an average improvement of 20 percent);
  3. Faster access to internal experts (43 percent of respondents with an average improvement of 35 percent)

20-35% improvement is pretty impressive.

When just asked to look externally, the 1,700 executives reported:

  1. More effective marketing (53 percent; average mprovements ranged from 17 percent for conversions up to 25 percent for awareness activities);
  2. Increasing customer satisfaction (43 percent with an average  improvement of 20 percent);
  3. Reduced cost of marketing (38 percent with an average improvement of 15 percent).

Again, not bad.  #2 is particularly interesting since social media is all about communication and conversations — your customers talk to you and to others, as compared to traditional marketing where they passively view a commercial or read an ad.

All in all an interesting report and the beginnings of something to show your management when arguing for the use of social media.

66% of marketers investing in Social Media

66% of marketers plan to invest in social media over the next 12 months.  This is from a study by Alterian.    20% of traditional marketing budgets are being funneled into social media by 40% of the marketers questioned in the study.

When we think of making money with technology our minds may drift to software, but in the very rapidly changing world we inhabit,  Web 2.0, aka “social media” like Facebook, Twitter and even YouTube is becoming a key place to not only find our customers and target them with enhanced customer service or cross-selling (offering them a product or service that compliments what they already buy from you), it is simply the fastest growing way to reach new prospects and stay in touch with your current customers.

Making Money with Facebook?

Social media (the latest “techno-buzz term”) simply refers to people having conversations online.  In the far away land known as “Web 1.0” the internet was one-way.   You threw a website online or sent out emails and things were pretty simple.  Customers would check out your website for information, and might call your contact center or send you an email.  Ah, the good old days!

Social media (Facebook, Twitter. . .even YouTube) makes this seem quaint and old fashioned.  In the world of Facebook a short comment is followed by other comments and pretty soon you have a town meeting going on.    The vendor does not control the conversation — in fact no one controls it, not even the person who begins it!     With 500 million users now on Facebook it is larger than the United States of America — and perhaps just as powerful in its own way.

This new phenomena of social media can be a power for good or for evil.    It can help your business, or it can destroy you.   Businesses today must learn to deal with it one way or the other — and to try to find a way to use it as a way to make money.

The first thing to realize is that if you take a used car sales approach to Facebook or its ilk you will fail miserably.  Social media is all about the conversation and nothing turns people off faster than a sales pitch in the middle of a party.     To get fans who “like” you and read what you post you must provide valuable information, hopefully in an interesting way!  Doing this must be consistent — you may well have to hire an employee to manage your social media presence.   My company provides training, consulting and even provides the social media “presence” for companies — but be forewarned that if you outsource to someone like me they still need to learn a lot about your company and stay in close contact with you.    Why?

Because it is all about the conversation — and if there is no meat, no “there” there, you will quickly turn off anyone interested in you — and far from making money, you will soon start losing it to your competitors.

Content is king.  To make money on Facebook, Twitter and the rest you must have content of value and you must provide this in a succinct fashion.  You must post often (2-3 times a day on Twitter, at least daily on Facebook and 3-4 times a week on your corporate blog).   Since this is a conversation, you must encourage “fans” (find them via your email databases and by posting in places your customers visit online).    Respond to comments, good and bad — and do not be defensive.

Remember it is a CONVERSATION.

Some of the keys to success in Social Media are:

  1. Build a large and legitimate following by being informative and interesting;
  2. Respond to comments quickly and with substance
  3. Blog, Tweet and post frequently — but again it must be USEFUL information
  4. Monitor your social media communities — know what is working and what is not working

There are some great tools to help you manage multiple social media efforts, and to analyze how successful they are.  You will most likely not see “over night” results, but over time your base and your sales will increase.

As social media grows (and the largest growth is in women 55-65!), the traditional marketing bases of newspapers, radio and television are losing customers and advertisers.    Social media is a revolution.  There are ways to thrive in the revolution, but it is not by playing the game the way you might have historically with press releases, TV ads and the like.   The new world is all about loss of control and “the conversation.”

Social CRM is redefining customer relationships

Have you heard the story about “Dell Hell”?  A few years ago a Dell customer was unhappy with a computer he’d purchased.   In the old days he would have groused to some friends and spent countless frustrating hours on the phone to Dell customer service.    Those days (perhaps unlucky for some vendors) are gone.  Now we live in a social media (Facebook, Linked In, blogging, Twitter, etc.) world where we are no longer “six degrees of separation” from one another — but more right around the internet corner.

In this case the unhappy user wrote a blog and in it he wrote:

I just got a new Dell laptop and paid a fortune for the four-year, in-home service. The machine is a lemon and the service is a lie. I’m having all kinds of trouble with the hardware: overheats, network doesn’t work, maxes out on CPU usage. It’s a lemon.

Jeff Jarvis, the blogger in question, might have been very surprised by the reaction of his blog.  He hit a nerve and within two days his blog was the topic of a New York Times article. This is not the type of public relations any company wants.

In the “old days” of just a few years ago the company drove the message.  Today with social CRM the customer is driving it as well.  If your customers are not happy they are blogging, tweeting and letting the world know of their unhappiness with your products / services.

The future belongs to those who realize that communication with customers is now a ‘two way street.”   Social CRM (customer relationship management) means that the customer can communicate to the world at large without a multi-million dollar ad campaign.   All you need is a keyboard and an internet connection (and the keyboard may be a virtual one on a smart phone).  People “tweet” their unhappiness instantly.

Businesses need to realize that social media can be their friend (as in Gary Vaynerchuk who spent $15,000 on a  direct marketing mailing which won 200 new customers; $7,500 on a billboard ad which brought in 300 new customers; and spent $0 on a  Twitter “tweet” (social media blast of a few sentences at most) and got 1,800 new customers.

The power of Social CRM is that today’s savvy customers trust their friends (and social media is all about connecting with people who share your interests) more than they trust a paid marketing mailing or billboard.   When Vaynerchuk tweets and someone contacts them he makes sure he contacts them back.  It is a two way conversation.  Granted he is a busy guy and the reply may take a long time — but he DOES respond.  Meanwhile others continue the dialog for him, and the “conversation” (social media is all about conversation and not a one way ad) continues, the audience grows and the control of the message may not lie with the business — but if the business is involved it influences and wins the business.

The way we sell and market is changing — and this change is bringing us back to the “one to one” marketing goal of CRM in a way that big business could never do all on its own.

Dell learned a lot from “Dell Hell,” and you can too.  Realize that if you have a great product people will sit up and take notice.  They will also notice if your product is not so good — and they will tell others of their unhappiness.  The customer relationship is now perhaps the customer / vendor relationship and it is definitely a two way street.

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