Don’t make this mistake with Social Media

Just read this on twitter:

@effie_tsi Gary Vaynerchuk found first hand: $15,000 in direct mail = 200 new customers; $7,500 billboard = 300 new customers; $0 Twitter = 1,800

On the surface, doesn’t this just look wonderful?

If you and I knew more about the customers of each segment, we might not be too excited about that $0 cost for twitter.

First, there’s the time involved. I have to count my time, right now, writing this, as cost to my business. Somewhere, somehow, one of my clients will eventually or has already paid me to write this blog entry. It’s all calculated into my promotion costs – time is to me, more valuable than money.

If I spend all day twittering, facebooking and being mr. Social media, I better get a new twitter follower (or 100) and I better see an increase in visits and purchases. Otherwise, all that time spent may be for naught.

Every thing you do has a cost associated with it. Free social media is no exception.

Second, and this is a stinger: what if the twitter-sourced customers only buy one time and only buy the lowest-priced product or service you have and they never return? What kind of stable business can you build with this scenario?

Third, what if twitter-sourced customers return more merchandise? If returns are 50% higher from these customers than those with direct mail or with billboards, do you still want them?

What if, due to the nature of the media from where the customer was/is acquired from, that twitter-sourced customers were 25% more likely to complain, clogging phone lines, bogging down customer service?

Fourth, what if twitter goes away? Yeah, I know, that seems impossible, given its incredible importance to global peace, right? I will tell you this: if it becomes a source for whackos to motivate each other and communicate, do you think the US Gov’t will allow it to continue?

Look, myspace is out. It’s not even on most social media experts’ radar that I can tell. It’s all Facebook and Twitter.

(One other quick example: I love free press, but relying 100% on the hopes of always getting great, wonderful, positive, customer-getting PR for free would be stupid and likely be suicidal for my busiensses.)

So, if something happens to either of these (or, worse, what if the FTC gets up in Google’s face?), and you are 100% relying on twitter for your primary source of new customers, and you open up your computer one day and see the FTC or some other gov’t agency has shut ‘em down.

Don’t think that can’t happen, either. Microsoft knows the wrath of the federal gov’t. They will show their force if in their view, public safety or public interest or … Gov’t interest is not being served, watch out.

Bottom line: All these social media sites are great, but be careful how much you rely on them to grow and sustain your business…

A Business Anarchist will always keeps a menu of excellent customer-gettin’ methods fresh and on-tap – including twitter and facebook, but not exclusive of the other “more costly” methods. Beware the green pastures of Social Media. Got it?