How Do I Deposit A “Like” Into My Bank Account?
I was chatting with my local banker the other day and the topic of Facebook came up. We were comparing the number of “likes” each of our companies had. Jokingly, I asked him how one deposits a “like” into a bank account. Emphatically, he said “One doesn’t“.
I have a couple of my companies on Facebook right now. A couple very neglected and a couple active. They all have the same ROI (return on investment). Freakin’ ZERO!! But like most, I “feel” like I need to be there.
Think about all the time we spend on Facebook marketing our companies. Multiply that time by your hourly rate then divide into your sales and see what your ROI is. IF you measure your results fanatically, you will come to the realization that this is a fools errand. I have reduced MY time on Social Media to less that 30 minutes per week.
Evidently I am not alone.
According to a USA Today article (4/17/13) 61% of small business see no return on their investment in social media, yet 50% say they have increased their investment in it and only 7% have reduced it! Another definition of insanity (Doing the same thing over and over again expecting a different outcome) . They even had the CEO of a Social Media Company interviewed insisting that “small businesses DO get returns on social media, they just don’t know it when they see it”.
Are you freakin kidding me? I know money when I see it. The last time I checked, Zuckerberg’s face was not on any US currency. “Likes” do not always equate to cash in hand.
The one and only fool proof way to know if your marketing is working is through the balance in your bank account. IF it cannot be measured, DON”T DO IT!
Stupid is as stupid does
(Forrest Gump had a point)
Even the big boys are dumb enough to invest time and money in social media. In another USA Today article, the company that manages social media for the likes of WalMart, Sears and Amazon reported a 40% increase in social media campaigns by its’ clients, BUT…. According to IBM Smart Commerce (tracker of the top 500 retail sites) social media only accounted for 1% of online traffic and sales!
Now I don;t know about you, but my pockets are not as deep as these guy’s. I cannot afford to dump buckets of money into something that has little to no return. If it ain’t working, stop doing it!
So next time someone is trying to sell you SEO and Social Media, ask them specifically how they will guarantee a ROI. How will they track conversions from “likes to dollars”?
One thing I am fairly certain of… No bank in the US will accept a “like” as a deposit.
I am also certain that your accountant would agree. And along those lines here are FOUR numbers that every business owner must know that your accountant doesn’t.