How to make money with Social Media: Ch 6 conclusion

I want to write about the 1st of the 5 core values that the authors of this book talk about in regards to social media behavior. Number 1 is that we are to show people respect. We need to realize that they are humans on the other end, and as such we should treat them with respect. I do not like it when people post negative comments on Facebook as this really brings people down. I also think that companies like Facebook and Twitter need to respect the information that we give them as we are their clients. Granted, we do not pay for the service, but I do not think they should sell my email address to companies that want to market to me. I think that is very disrespectful. If we truly treated others as we would want them to treat us, I think the social media platform would be a lot more friendly and encouraging.

Social Media Bubble Burst?

In an article by Carrie Brown- Smith, she talks about how 2012 may see a burst in the social media bubble. Some of the statistics that she sights are the declining numbers of people who re-Tweet, post Tweets, or that are activly Tweeting. I am starting to see more and more of my friends shutting down their Facebook accounts because they feel that it is a waste of time. Is this a growing trend in social media in general? I do not think that is the case at this very minute; however, I do think that over the next 5 years we will see Twitter and Facebook start to decline. What I am interested in is what the cool new thing is going to be for social media. I think things like Skype, where you can literally be face to face are going to have some part in the new revolution that is going to take place.

Future of Social Media

I just got done reading an article in which many famous/entreprenurial people were asked what the future of social media is. The one asnwer that I found pretty interesting was the answer from Mike Monteiro who works with Twitter. I could not tell if he was joking or serious, but he thinks the future of Social Media is that of lying. He feels that the more people get to know about themselves, the more they are going to see how boring they really are. This is going to make people create fantasy worlds where people can "travel" to places where they can be interesting. Mr. Monteiro feels that is what the new inventions of social media are going to bring. I find this kind of a weird opinion, but if it is true, what are these new technologies going to look like? Is it going to bring more depression or loneliness because people will not be connected with the real world? We will have to wait and see!

Buy Facebook or Not?

After looking into Facebook, knowing that their IPO is soon coming out, it is very important that we evalutate if Facebook is a good. buy. I have come to the conclusion that facebook would be a good buy fro holding for 2-5 years, and I would buy into it after 2 months (When the stock decreases from its intial price). I feel that Facebook is a bubble and it is a matter of time before it goes "Pop". Facebook does not have any capital where it can get its value from. All of the ocmpanies worth is in ideas, so if they were to sell the company, there is not physical assets that would be transfered (besides some computers). So i think that the stock price will be way overpriced, but will go up for a few years on customer demand before it flops.

Is Social Media Worth the Investment?

The title of this post was the question that was being addressed in the Pivot Newsletter. I thought it was a good question to take an honest look at because some companies are spending millions of dollars on trying to grow there business through the use of social media, but is it really worth it. If you have read my previous posts, you remember that I talked about how many companies do not even track the results of the money they are putting in to social media. Having said that, lets us examine the issue of Social Media investment.

One thing that social media does not do well is that it is not a very good lead generating tool. Many people think that Facebook and Twitter are going to connect them to thousands of people to get more leads, but this does not seem to be what the facts suggest. However, if you are already connected with a person, social media is an AMAZING way to grow their investment with your company. Social media is not very good at generating results in the short term, but in the long run it does seem to have helped out many companies. In order to answer the question, one must ask what they want to use social media for. If it is for exposure or for continuing to build relationships it could be a good investment. However, if you are wanting to get a lot more leads, I would buy a lead list!

Facebook IPO

I just got done reading an article that gives some pretty grim warnings about the IPO of Facebook. They say that Facebook is trying to get a valuation of between 75-100 billion dollars. In my opinion, this is a pretty high valuation for a company that does not produce any physical goods. The article talked about how many of the large wealth advisors around the country are not buying into the entire Facebook hype. I do not blame them. If I were managing millions (or billions) of dollars of other peoples money, I would not put a large portion into a stock that makes all of its money from advertising. I think that Facebook is a great company, it has some room to grow, but in the end I think there might be a bursting of a Facebook bubble.

Linked In in Financial Planning

An article that I read called "In the Game: New Rules for Social Media" talked about how financial planners need to start using social media in order to build a more solid practice. They talk about how FINRA regulations shocked people because of the lack of regulations that compliance for companies have to follow in regards to their employees posts on Facebook, Twitter, and Linked In.  The use of Linked In is what most professionals use to help drive their business as it helps connect them with other business people around the world. I feel that social media can be used more in the business world that it is now. With 800 million Facebook users alone, there is a vast opportunity for a Financial Planner to get new clients. This article talked about how you can post interesting articles that you have read, or give little insights into financial planning. This will help build credibility with those around you, and ultimately help grow your practice!