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Why you can’t quantify the ROI of Social Media & Blogging

By
Education & Training with Writing Roads

When I’m working with a client to start a blog and/or use social media to grow their business, I’m always asked for the ROI (return on investment) because most people love the security of ‘if you give the Starbuck’s guy $5.00, he’ll give you a small coffee.’

But, using social media & blogging to grow your business doesn’t have a predictable ROI, or at least not one as quantifiable as the coffee example.

Here are some things that are guaranteed through the use of blogging & social media:

  • Increased traffic to your website
  • Increased rank
  • Increased searchability

But guess what? These guarantees come with huge IF’s attached.

You’ll only get increased traffic, rank and searchability on your blog if you:

  • Post on a regular basis
  • Provide quality content and valuable information
  • Link out
  • Listen to what your readers or potential readers are looking for
  • Read and comment meaningfully on other blogs and your own

You’ll only get increased traffic, rank and searchability to your site with social media if you:

  • Participate consistently
  • Listen
  • Give more than you take
  • Are authentic
  • Provide quality content and valuable information
  • Join in for the conversation and to learn - not just for the sale

But, there’s another huge reason why the ROI is a big IF. You may not know this, but I’m a yoga teacher with over 500 hours in training - I used to teach guest yoga and workshops at Kripalu Center - and it was one of the most creative and giving highlights of my life. And, one of the many lessons I learned through my own practice and from my teachers was that no two people will ever experience or do a yoga posture in the same way. In fact, you, yourself, will not do a yoga posture the same way twice - because we are all unique, moment to moment.

Think about that. I’m older hour by hour, I’ve learned new information, I’m tired, I’m excited about something - but I’m never the same, so I can’t experience or do anything in the same way. This applies to blogging & social media and the unquantifiable-ness of ROI because no one will behave the same way from day to day or network to network. The pose, if you will, consistently changes…and so, therefore, do the results.

So, your performance on your blog and on your social networks depends on you:

  • Are your eyes open to networking?
  • Do you take opportunities?
  • Are you creative when you network?
  • Do you experiment? See what works, try new things, recalibrate, re-try?
  • Are you growing with the wave of technology and innovation?

And, finally, Chris Brogan (social media expert and fantastic blogger) answers this question on a recent livestream podcast. He said there is no ROI for blogging & social media. They are tools, part of a communications and marketing strategy. Your sales closing process determines your ROI.

Very good point. Blogging & Social Media make connections, they get you to the people - you have to close the deal. And, how you behave in those places directly impacts who you attract and your reputation while setting the foundation for said deal closings.

Like any other successful tool, blogging & social media work if you work ‘em. It’s all up to you - and I have all the confidence in the world that you can make it happen.

 

Julie Roads is a marketing copywriter, blogger, social media consultant & speaker who thrives on helping you find your authentic voice & personal brand, and keep it, while you grow your business.

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Show All Comments Sort:
Ken Tracy
Coldwell Banker Residential - Naperville, IL
Helping clients buy and sell since 2005

Hi Julie.  YOGA kicks butt!

I have class in two hours.

Thanks for writing,

Ken

Jan 22, 2009 12:43 AM
Dirk Johnson
DomainDrivers.com - Potomac Falls, VA

Hi Julie,

Nice post. As someone in the SEO business, the ROI is always an issue. There is a leap of faith involved here. When it works, it works well. One thing is for sure...doing nothing assures no ROI whatsoever.

As well, simply having a blog that nobody reads or visits is largely a no-return proposition.

A blog owner has to create participation, by particpating with others. At that point, all kinds of opportunites open up, such as blogroll exchanges. Those are not encumbered by nofollow tags. But to get them one has to participate and "earn it".

Thanks. We built the Blog Comment Assistant for Real Estate to do exactly what you describe above. That is, to genuinely participate with other bloggers.

Please give it a review, if you would.

http://www.domaindrivers.com/BlogCommentAssistant.html

To start a fully-functional, ten day FREE trial, please go here:
http://www.domaindrivers.com/BlogCommentAssistant/BlogApp/BlogApp-NewAccountFS.asp

Links to instructions are included throughout the tool.

Thanks!

 

Jan 22, 2009 12:49 AM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Julie, I have to respectfully disagree.  ROI should be calculated for all investments of money and time.  There can always be a way to measure with the proper tracking tools.

Jan 22, 2009 01:07 AM
Michelle Minch
Moving Mountains Design Home Staging, Pasadena, CA - Los Angeles, CA
Home Staging Los Angeles and Orange County, CA

Julie: Another interesting and thought provoking post of a different way of looking at social media and networking. I particularly liked this paragraph:

 Blogging & Social Media make connections, they get you to the people - you have to close the deal. And, how you behave in those places directly impacts who you attract and your reputation while setting the foundation for said deal closings.

Thanks Julie for the wisdom you share.

Jan 22, 2009 01:15 AM
Julie Roads
Writing Roads - West Tisbury, MA
Writer, Blogger, Social Media Consultant

HI Gabe! I love when people respectfully disagree with me! I actually do agree that you can track it...but not that you can predict it completely before you start.

Jan 22, 2009 01:30 AM
Mark MacKenzie
Phoenix, AZ

Julie,

I agree that you have to give more than you take - and such is life.

You can't reap before you sow.

It takes time but that doesn't mean that you don't do it.

Jan 22, 2009 06:12 AM
Lisa Hill
Florida Property Experts - Daytona Beach, FL
Daytona Beach Real Estate

All good points. And don't you hate it when people ask for specifics on their ROI. Like we have any way of knowing what the market's going to do. If we knew that, we wouldn't be in the position we are, now.  (>.<)

Jan 23, 2009 03:04 PM
Rene Fabre
ARFCO Media - Renton, WA
Practicing Philosophical Eclectic of the Arts

Julie...

You are so right on... very articulate!

Thank you, I will share this with my people.

Rene'

flying twitter bird

Jan 27, 2009 08:07 AM
Anonymous
Janet Matzke

Thanks for the post-there is no silver bullet for the ROI, but certainly how we approach an opportunity determines the outcome. 

Jan 27, 2009 11:55 AM
#9
Naoma Doriguzzi
Virginia Beach - Virginia Beach, VA
New Media Director

I agree with you and think this is a great post! It is all about engagement.

Feb 14, 2009 04:07 AM
Kimo Stowell
HI Pro Realty LLC RB-21531 - Honolulu, HI
REALTOR® RS-76763 - Honolulu Hawai'i

Aloha Julie,

A very thought provoking post. SEO simply connects you to potential consumers you would otherwise not have direct contact with. How and If you actually take advantage of this connection is up to you.

Gabe's comment about tracking and predicting return of on investment is valid to a point but the potential for actual business and an accurate ROI is trapped in real time and cannot be predicted anymore than ones moods or disposition towards any number of opportunities.

With that said certain personality traits are better indicators of success than simply tracking hits and clicks and SEO success is like betting on a horse race. When all the marketing elements come together your odds of winning more clients is dramatically improved but you still have to get on the horse and run the race and there are no guarantees of winning clients if you can't initiate and close the deal. Which raises the old addage- 'you can lead a horse to water but you can't make him drink'. Great post.

Feb 23, 2009 08:47 AM
Amy Boxer
Pura Vida Design Group, Inc - Oakland, CA

Thanks Julie.  I agree with everything you say in your post and I know you can't track your exact returns, but because of that, it is so hard to determine how much time you should invest in it.  Now I do "as much as I can."  Which I am not sure is good enough.  Or is it?  If you don't have "enough" time to dedicate to your online social promotion - maybe that's good - because you are busy working...??  I have more time and do more, when I am slow... hum.. maybe I just talked myself into a new blog topic :-)

Thanks!

Amy Boxer - Welcome Home Furniture Rental & Staging

Feb 23, 2009 08:47 AM
Roger Johnson
Hickory, NC

Very good article on not only why you need to be involved in social marketing, but why you need to be consistent in it as well (something that I have to work on myself).  Tracking ANY online marketing is difficult at best, and if you think otherwise, you're just kidding yourself.  For example, several people swear by making users log in to their websites that they are getting MORE and BETTER results than by not.  The truth is that you've only setup a way to gauge those that do sign up, but you have no way to know how many people simply left your site instead of signing up (or in other words, how much potential business you lost).

Food for thought.

Feb 23, 2009 09:11 AM
Cathy Lee
CL Design Services Home Staging - Danville, CA
ASP, IAHSP, RESA Danville, CA

More knowledge and wisdom to digest!  Thank you again. 

Feb 23, 2009 09:53 AM
Karen Otto
Home Star Staging - Plano, TX
Plano Home Staging, Dallas Home Staging, www.homes

Great perspective Julia! I swear I was going to cut and paste exactly what Michelle Minch did up there, she beat me to it - but that in a nutshell says it all. Just like any form of networking - YOU are always part of the equation.

A very important part you mentioned is our behavior in all social environments - the internet is a thinly veiled window into the personality of many. So be on your best p's & q's even if you choose to disagree. There's always another way to say it.

Feb 23, 2009 10:00 AM
Michelle Finnamore
Toronto GTA, Alliston, Newmarket - Vaughan, ON
Preparing your property for sale

Excellent post as usual Julie, always informative.

I know a Real Estate coach who says he will not answer a message from an email. If someone cannot be bothered to call him and talk person to person he doesn't reply. Short sighted and old school thinking for sure, but he preaches it to all the thousands that attend his seminars. I tested him out on his theory and he did not reply so at least he actually does what he says he does. I know that face to face is the best way to build a relationship but those that think social networking is a passing fad are sadly mistaken and on the wrong end of the stick.

You could also compare time spent on line with the presentations in offices  that I do for Realtors.Just this week a Realtor called to use my services that had seen my presentation the last time in February of 2008 and July of 2007.

Long time line to close a business deal.

Worth the wait of course.

Did I do other things to market my services and build relationships in the meantime. Yes.

Was one of those things being on line building business relationships. Yes.

Was there a ROI for all these efforts. Yes.

If you are not actively participating you cannot reap the rewards. Online presence is just the newest opportunity for you to participate.

Feb 23, 2009 11:15 PM
Tamara Perlman
Referral Network Inc. - Truckee, CA

Hi Julie--

I love the comparison to yoga and how no two people will ever do the same pose the same way or how we'll never do a pose the same way twice...  Good inspiration to get out there and do it!

Feb 24, 2009 02:14 AM
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

I agree that ROI is hard to calculate with social media.  Some people are just not going to do it correctly or get a good enough following to be successful.

Feb 25, 2009 11:12 AM