Social networks and your bootstrap business (Part 1)

Filed in archive Bootstrapper Resources on March 29, 2008

We've talked before about the importance of social networks on line for the bootstrapper with few financial resources when it comes to reaching customers.

But in an earlier post on the subject marketing expert Charlie Cook comments:

Social Networks are being touted as the latest and greatest magic pill for marketing. But are they?

In my experience...using the social networks to build interest, traffic and sales is one of the least effective ways to generate new business. That's not to say it can't be done but for the entrepreneur with limited time and ambitious goals, its not the place to start.

While in a later post web industry and emarketing guy Leonel More comments:

Ok, I agree social networks play a role in marketing over the web. But do you think the valuation given to them are right?

Facebook: 15 billions
Bebo: 850 millions

More also insisted that social groups:

...are great for niches but I don't think Facebook style nets are so handy (at least for marketers). A big bubble is growing around all ad-able things over the net, just wait the pop.

How valuable are social on line networks to the bootstrapping entrepreneurs? In the next few posts we'll review some of the social networks out there and review some of the positives and negatives they offer.