Promise Media

Social Media Portfolio Protects Business From Risk

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A portfolio of online marketing products and services will protect a business from a collapsing vendor.

Internet history is filled with failed websites that offered marketing services. One of the biggest is the closing of Google Plus, Google’s massive attempt to develop a social media platform.

Even though it allegedly closed in response to a data breach, the closure is really no surprise. The awkward product simply didn’t deliver results for people and companies that used it, which in turn led to weak and declining overall usage.

A company that aggressively used Google Plus now has nothing to show for its efforts. The return on investment of time and money is now zero.

Principle #1: Right Effort

The first marketing principle in social media is the importance of matching effort with results.

Although this company used Google Plus, the lack of benefit was clear after various tests of how to attract followers on G+, visitors to the websites of Promise Media and visitors to the websites of PM clients.

So the logical response was a cutback in efforts to a trickle. A trickle made sense just in case Google finally figured out how to make Google Plus a success.

Cutting back on the time and effort we put into Google Plus meant more time and effort to place in other social media accounts. The accounts with the best results got the most effort.

Principle #2: Portfolio Management

The concept of a stock market portfolio works well with social media marketing. A stock portfolio consists of a group of stocks that share the risk and reward. Some stocks go up while others go down.

The total value of a well-managed portfolio ideally will go up in a good market, but it won’t go up as much as the best stock. Likewise, the value of the portfolio will go down in a bad market, but not as much as the worst stock.

As the investing environment changes, the portfolio owner keeps the best stocks and replaces the worst ones with others that might do better.

A social media marketing portfolio is a group of social media accounts that share the risk and reward for the business. Some accounts will perform better than others. These are the keepers. The business can reduce or dump the ones that don’t perform well enough and replace them.

By not “overinvesting” in one social media account, the business doesn’t end up with a disaster if that company or its product goes away, just like Google Plus.

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