'It makes me think of a prehistoric fish in a receding inland sea saying to an amphibian "so, what's the business case for legs?"' - Christopher Kenton
This quote refers to people who are reluctant to be involved with creating an online presence. I don't blame them- we all want to get out there and find the best ROI- whether the "I" part of the equation is money or time, neither of which there is enough of.
And the Internet landscape is a hard one to use tracers on. It's easy enough to track a buyer lead (and the conversion rate) from a couple who walks into your open house and tells you they were driving by and saw the sign. It's harder to judge exactly WHAT caused an Internet buyer to pull the trigger if they read your blog, began following you on facebook, and finally decided to go with you because you gave them good information.

But, since you are here, I am assuming you have a blog and a website. So:
#1. Run them through WebsiteGrader and follow the advice. Keep in mind that blogs are seldom freestanding so your blog will likely be part of a larger group of blogs, such as ActiveRain.
#2. Sit down and write out who your ideal client is. Do you work best- convert the most- first time homebuyers? Do you prefer second home purchasers? Then ask yourself, "If I were this person, what information would I be looking for?" THIS HAS TO BE IN THE BACK OF YOUR MIND WHEN YOU ARE ESTABLISHING YOUR PRESENCE- each time you post an article in your blog, every addition that you make to your website: run it through that filter. Did you sell 50 homes last year? That is terrific, but WHAT did you do that makes you different and will make you interesting to your target?
#3. Get signed up on Facebook. Many of the people "friending" you will be other sales agents, which is nice. But honestly? The bulk of your business will not come from them. Use the search bar to look for groups in your state that would attract your demographic, and start being friendly!
#4. Sign up on twitter. You will make a lot of real estate friends- and this is great for education and support, but may not put butter on your bread. A tool for locating people local to you- and I assume this is where you get the most business- are (((drum roll))) localtweeps. TweeplePages is set up to search by interest- but you can add your location and state to "Interests" and that brought up results by search for me.
#5. Most important- set up a schedule! I am as bad about this as anyone- but if you blog on Tuesdays and Thursdays, people will expect to see your blog this Tuesday. Treat this as part of your prospecting- and also part of creating good karma, because you will be giving out helpful information. Get one blog ahead and keep it in your documents in case you get the flu or something.
And remember- have a little fun! People can sense it, and it tells them that you like what you do.
Diane, thanks for the info. I'll definitely have to check into the localtweeps and tweeplepages sites.
Chanda panda