30

Apr

Creating a Social Network Might Be Great for Business, but Who’s Going to Run the Thing?

Posted by: Jeremy Reither

With all the free and inexpensive social network packaged solutions available now – like Ning and BuddyPress (and literally dozens of others) - building a basic social network doesn’t have to be all that big of an investment – right? Well, let’s talk about that for a second. Creating the network infrastructure may be easier than ever, but what people often overlook is the effort required to operate a social network. Considering operating costs as part of the costs of the overall project will help you avoid surprises and maximize your chances of success.

Micro-niche social networks are all the rage right now. They’re popping up everywhere – as evidenced by popular niche networks like Twitter Moms and Barista Connection. I’ve just received 3 invitations to join social networks for my university alumni, my highschool alumni, and the alumni of a previous employer. Sound familiar? Basic Social Networks are no longer considered particularly cutting edge or forward thinking – they’re everywhere.

Note: For you, the decision of whether or not to create a social network should be based on research about your target audience, the needs of that audience, whether those needs are being met elsewhere (i.e. by another social network), and what you and your business stand to gain from meeting your audience’s needs (i.e. creating an uber-targeted advertising platform). For the sake of this post, we’re going to assume that creating a social network is the way to go for our hypothetical business owner.

I mean who wouldn’t want to have a specialized Facebook just for your colleagues and pals, or even consumers, where you can collaborate with each other, share tips, strengthen relationships and make new ones all in the same place. But as with any new social media undertaking – you shouldn’t underestimate the need for user participation. You’re going to need to lead the way in that department. You’ll need to become your own social network’s biggest evangelist – and there you have one of your biggest operating costs: your time (and your employees’ time).

Want to have a chat room on your social network? You’re going to need to get the ball rolling by suggesting topics and answering questions yourself. Want to allow people form “groups” on your social network? You should create the first few groups and events yourself. Are you going to promote your network to attract new members? That marketing campaign should be considered part of your ongoing operations, too. You get the idea: running your social network could easily be a part time job, even before your first members join.

If your budget and manpower resources are limited you should consider initially just creating a group on an existing social network like Facebook (for casual), LinkedIn (for professional), MySpace (for entertainment), or another existing niche network in your industry. You can get by with minimal time investment in the beginning, and the success of that group could be a real indicator as to whether you should pursue the development of your own social network.

But if you have done your homework and identified a cohesive niche that “needs” a social network, and if you’re willing to commit your time and resources to start off as the network’s most active user, and if you have a plan to monetize that network or compliment your existing business operations, then you may really be on to something. 

TwitterMoms was formed in September, 2008, and had nearly 5,000 members two months later. As of this post, they have nearly 15,000 members - yet about 100,000 unique visitors each month. I guarantee they’re having no problem selling ad space to marketers. How’s that for inspiration?