Direct Sales and Social Media: The ROI of Social Commerce from stevenhook's blog

Eventbrite, an online event management company, recently released a report with some astounding stats regarding the return on investment of what they define as "social trading." In a nutshell, the company reported what could eventually become the first definitive "hard evidence" that yes, you can make money on social media.

It's a wake-up call for direct sellers everywhere. Last month we looked at ways to increase sales, and this month we're looking at ways to increase the number of employees in your direct sales operations. Today's article takes a look at the connection between the two: the fact that your business opportunity is the greatest "product" your company has to offer, and now, more than ever, the internet plays a huge role in how well it can do that." to sell". Product.

Eventbrite's report doesn't reveal the whole story, but it does give us an idea of ​​the earning potential of what they define as social commerce. The image on their site shows the power of how referral-based social commerce works.

How does it work?

First, someone visits your site and learns more about who they are and what they do. In this case, someone buys a ticket to an event, starting the traceable chain of events leading to the referring company. Eventbrite has done a great job developing the tools to do this on their site. They also did a great job making it easy for people to tell their friends. By using the Facebook "Like" button and giving customers the ability to "retweet" details about registering for an event, Eventbrite has made it possible not only to tell people about the event, but also encourage you to buy your own ticket. like.

When a ticket buyer shares their purchase decision with their circle of influence, others in their circle learn about the event, visit Eventbrite, and decide to make their own purchase. They then become part of the 'share a marathon' viral effect and can tell their friends about it, which in turn powers the social commerce engine.

This is basic referral marketing with a high-tech shine. And it's something you can do in your business as well.

Why does it work?

In this age of savvy shoppers and cynical readers, people rely even more on word of mouth from their friends, and not just for things like movies and restaurants. More and more categories of products and services are an easy target for referral marketing with the power of Social Media.

Just one tweet asking your followers to share your favorite WordPress plugin can generate hundreds of comments in minutes. On Facebook, where a status update has a longer 'life expectancy', that request can generate responses for days. Now, instead of googling an unknown variable, third-party social proof has narrowed the field of options down to the best options recommended by trusted sources (i.e. your friends and family, who you already know, like, and who you like). finds). †

How can you take advantage of this in your direct selling activities? Here are some ideas to make it easy for people to share their experience with you with their friends:

Create a Facebook page for your business and update your list whenever you host an event or show.

Create a "fans only" section on your Facebook page. This is a private area where it shares special incentives to book, buy or recruit with you. People have to "like" your page to access the "fans only" content. When they 'like' your Page, it will show in their activity updates and your Page will be approved by third parties.

Post a status update that "tags" your host, who also posts on your page. They then have the option to comment, like, or promote your post in their own online friends list. If your host is on Twitter, you can tweet about the upcoming show and chat with the host in your tweet stream.

Encourage your hosts to tag you in their Facebook status updates or tweets. Put their names in a monthly draw and announce the winner via social media.

Train your new recruits to use Social Media appropriately so they can tag you when you train with them. This builds your credibility and theirs at the same time.

Tag your recruits when they get recognition. By publicly celebrating your team's achievements, your circle of influence will give them more prestige. When you tag someone on Facebook, it appears on their wall and their friends can see it, even if you're not friends with their friends.