(This is Part 1 of a two-part series. Read Part 2, "Which social network suits you best?")

Social networking may soon overtake virtually every other source as being the most important strategy for lead generation. Have you incorporated this powerful tool into your business?

What is a social network? According to Wikipedia, social networks are online communities where people can explore interests or activities that they share with others. The key point is that social networks allow participants to interact through chat rooms, instant messaging, traditional e-mail, video, video e-mail, file sharing, blogging and discussion groups. Wikipedia identifies three primary types of social networking services:

1. Directories such as former classmates

2. Means to connect with friends (Facebook, MySpace, Twitter and YouTube)

3. Recommendation systems linked to trust (LinkedIn)

For example, social networks are a great way to stay in contact with family and friends, as well as your clients. Many agents who have lost track of past clients and friends have found them through these networks. These sites also allow you to share pictures of your listings, videos, links to interesting articles, as well as important information for potential clients.

Granted, there are certain risks associated with being online. Whatever you post is there for posterity, even if you take it down. Identity thieves can check your work history. Nevertheless, the benefits of participating far outweigh the potential risks.

The great news about the Web 2.0 environment is that most of the real estate-specific services are either free or very low cost. This means that you can experiment with different services and determine which ones are the best fit for your business.

The most critical factor in your success will be your willingness to contribute to those who visit you online. Bob Burg and David Mann in their book, "The Go-Giver," point out that you can’t expect to earn interest until you put money in the bank. The same is true in terms of Web marketing using Web 2.0 solutions. To attract business, you must provide service that your Web visitors find to be valuable.

If you’re ready to put social networking to work in your business, next week’s article will show you how.

Bernice Ross, national speaker and CEO of Realestatecoach.com, is the author of "Waging War on Real Estate’s Discounters" and "Who’s the Best Person to Sell My House?" Both are available online. She can be reached at bernice@realestatecoach.com or visit her blog at www.LuxuryClues.com.

Ross will speak at Real Estate Connect in San Francisco, July 23-25, 2008. Register today.

***

What’s your opinion? Leave your comments below or send a letter to the editor. To contact the writer, click the byline at the top of the story.

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