Networking Together: Firms Join Forces On Social Networks To Raise Profiles

Last year, Matt Milletto, director of training for the American Barista & Coffee School in Portland, Ore., had an idea for generating some buzz around the specialty coffee industry: Why not create an online social network where independent coffee-house owners, baristas, roasters and java lovers could swap tips and stories, pose questions or arrange to meet in person?

Using Ning.com, a site that allows anyone to create a social network, he founded a group called Barista Exchange that allows members to build profiles about themselves or their business and post discussion topics, blog posts, photos and videos. He invited everyone he knew in the industry and encouraged them to invite friends.

Since its December launch, the site has grown to about 3,000 members and gets about 15,000 unique visitors a month. Discussion topics range from the best espresso machines to the closing of Starbucks stores. "There's been forums and blogs [about coffee] for a long time, but with a site like this you can really put a face behind what you're posting about," Mr. Milletto says.

The expansion of social-networking sites and new tools making online interaction easier are giving small businesses new opportunities to network with each other and their customers, and to expand their reach. Instead of just setting up a network for their own customers, many are realizing the benefits of hooking up with other businesses to collectively raise their profile in a particular geographic area or industry.

Dedication Required
Small businesses are often better positioned to take advantage of social networking than larger businesses because they often seem more approachable and so customers and prospects are more likely to be interested in connecting with them online. And they're more nimble. "Smaller companies are a lot more able to react and be proactive" by using social networking sites to promote their business, says Alex DeNoble, head of the entrepreneurship department at San Diego State University.

Using social networking for marketing isn't as easy as it may appear, though. It requires the network's founders to first generate a healthy membership base of other businesses and consumers and then get those members to feel compelled to return frequently to the site and contribute content.

Mr. Milletto spent several months sending out emails to people he knew in the coffee industry. He also placed ads on other coffee-related Web sites and in newsletters to drive traffic to Barista Exchange and boost membership. He populated the site with blog posts in hopes of sparking dialogue among members. After a few months, the network took on a life of its own — but it took a while for members to start contributing.

Mr. Milletto has worked to make sure the site isn't static by adding new features such as job listings in the coffee industry and online messaging features.

John McMullen, a technology consultant in Jefferson Valley, N.Y., a few weeks ago created a social network on Ning.com for wineries in the Hudson River Valley region of New York. The hope is the site will help brand the area as a wine-tasting destination.

Mr. McMullen is still posting most of the content, including videos about the wineries, photos and wine-related articles. But he's starting to see some members join who weren't originally invited. Members can elect to have updates on the site emailed to them, which he hopes will encourage them to come back to the site.

Many networks employ tools such as Really Simple Syndication (RSS) feeds and email updates to keep members connected to the network's activity.

Still, many find growing social networks is slow going. Luke Bunting, founder of a Lancaster, Pa., Web development firm, started a group on Facebook.com two months ago for Lancaster businesses. Mr. Bunting says he hopes the site will help businesses share advice as well as publicize the need to support local businesses. So far, though, the network only has 19 members.

Netting Referrals
The networks that do manage to grow virally and build a critical mass can reap big benefits for their members.

Troy Reynard, owner of Cosmic Cup Coffee Co. in Easton, Pa., has about 619 "friends" in the Barista Exchange network and has created a subgroup for coffee businesses in the Lehigh Valley area of Pennsylvania. He met one coffee-shop owner on the site who is about 20 minutes away. He refers customers to Mr. Reynard's shop when they're in the Easton area, and Mr. Reynard refers customers back.

Mr. Reynard says he hopes his participation on Barista Exchange will draw more people to stop by his shop by showing he understands coffee. "If they read a couple of my blog posts," he says, "I think they could get a sense of what kind of level of professionalism I have — what kind of dedication to our craft."

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