I made a big observation about my business a few days ago when someone interviewed me for an article about social networking.  The person asked me how my business had grown as a result of it, and although I had been tracking how people found me, I hadn't really thought much about the numbers.

I realized that at least 80% of my business so far has come from social networking alone, and the remaining 20% has still been a result of my web presence (guest posts on other blogs, search engine optimization, etc.).

That's hard to ignore.  Up to this point, only a handful of projects have come from personal or in-person connections, mainly because I haven't even had time to start promoting locally.  All my business is coming from online connections.  More than that, they're coming from specific (and very small) niches of the Internet.  I haven't really had time to expand my efforts more aggressively online.

What does this mean to you?

Social networking can be a great way to build your business.  It may seem like goofing off at first (I used to feel that way), but it's really not.  Think about it.  If relationships are what businesses are built on, and you're spending your time creating and deepening relationships (doesn't matter that it's online), then you're building a strong foundation for your business.  The people you are interacting with online will value your opinion and your business, simply because they've learned to trust and respect you as a person and as a professional.  That will result in referrals and other connections coming your way.

So what can you do to get started in social networking?  I'll be writing a series around this topic, so stay tuned for more info.  Today, we'll start with one of the most important steps.

Step 1: Look for the right networks.

Do your homework.  Not all networks are created equal.  I'd recommend sticking with business networks, since everyone there knows why you're joining.  I've found that some of the social networks are just that...social.  They don't really want to read business tips or advice, and many of the members just aren't interested in hearing about your business.  That can actually hurt your standing as a member, especially if any content you contribute can be voted up or down by other members.  If no one there cares about business, what's the likelihood that they'll think highly of your business-related content? 

In business networks, all the members know exactly why they're joining, and they not only expect to hear about business, they want to hear about it.  They're generally a Seth Godin-, Michael Port-, and Donny Deutch-lovin' bunch, whose passion and creativity is expressed through their businesses.  This is a big part of their lives, and they're excited to meet someone who shares their enthusiasm for it.

Be careful, though, to join a network that actually has the potential to send you business, if that's your reason for joining.  If you're an attorney and you join a network for attorneys, your only hope for business is referrals made by other attorneys of people needing services in your area.  Will that be enough?  Will it be worth your while to join that network?  To answer those questions, you have to consider what you want in a network.  Building a business means a lot of things.  It means leads and incoming work, but it also means knowledge and experience.  Joining a network for your industry could offer a lot in the way of advice and assistance, but that may mean sacrificing a lot of incoming referrals.

The alternative would be to join a diverse network that serves all types of businesses.  That way you become known as the attorney, not just another fish in the sea of attorneys.  You'll be much more likely to get referrals from this type of network, but keep in mind that you may sacrifice some of the mentoring that could come from a group who truly understand the ins and outs of your business.

Naturally, if you have the time, joining both types of networks could make for a well-rounded mix for you and your business.  Just remember that it is a time commitment, so weigh your options carefully before investing your time and efforts.