Debate: Does Social Media Deliver Results for Small Businesses?

The Wall Street Journal invited two business owners—Karen Russo, CEO of K. Russo Consulting Inc., Stamford, Conn., and Kurt Walchle, CEO of Survival Straps, Jacksonville, Fla.-- to share opposing views.

(Readers, please provide your own views in the comments section.)

Why Social Media Hasn't Done Much for Me

By Karen Russo, CEO of K. Russo Consulting Inc., Stamford, Conn.

Show me the money.

I should start by stating: I am a believer in social media and the potential power it yields with both client and customer development.

Unfortunately, my believing comes from seeing the success of others. My own success with social media makes me think twice of whether it is all worth the time. If I sold t-shirts, margaritas or dance lessons I would absolutely bring my buzz to the beat of tweets; however, I sell research and recruiting efforts and I am not sold that my audience is actively listening via tweets, likes or shares.

Samantha Wilson

Karen Russo

Mass media's infatuation with social media has continuously reminded me of how the larger corporations (with dedicated resources) are in fact earning off of social. The opportunities for community engagement, business development and research related to solid social media strategies surely exist. Yet despite many half-hazard attempts, I have not yielded quite the same results.

To date I have had a LinkedIn profile, ablog, a Twitter account, a Facebook fan page, as well as YouTube testimonials, a Web-based radio show, niche blogging platforms -- and several New Year resolutions to make them all work well together.

To date, I have gained clients, networked through Twitter and blogging platforms to surface new leads. I have received countless messages and recognition regarding numerous blog posts, but I have yet to see a sustainable return on the time invested.

I have only had great success with social media when I am paying an employee full time to coordinate his or her efforts around the social Web.

During my work day I am managing my team, my clients, my candidates, my calendar and my family. And though I do see the potential value in social media, I do not see the time slots where I can possibly squeeze any more hours (or tweets) into my day.

This brings me to my real faux pas—those who say they get their success at night. Many small-business owners work on social media in the evenings or in "off hours." Because it requires a lot of time, they can't focus on it during the day.

I have owned and operated businesses for more than 20 years. I have worked day and night and day again. I have been there and done that, and certainly am not ready to do it again.

It is a true commitment of time, energy and relationship readiness. Will it be worth it? I am sure if I were to exert extreme amounts of energy, yes, it would be.

But what about the small-business owner who does not have enough time in his or her day to send out tweets and who is not sure it is worth spending $70,000 annually on a social media strategist? It leaves quite the dilemma.

With all that said my goal for 2012 is to leverage social media and integrate all of my marketing and social strategies. Just this time I will pay someone to do it for me.

Like I said, I am a believer. I just do not believe it can be done without a dedicated resource and unfortunately I cannot do it all myself. Hopefully, this year, the money I spend will be earned back. Hopefully, this year social media will start to show me the money.

***

Why Social Media Has Been Critical for My Business

By Kurt Walchle, president and CEO of Survival Straps, Jacksonville, Fla.

When we launched Survival Straps five years ago, we didn't have the cash for traditional advertising. What we did have was the motivation to work long hours and a computer.

We produce fashionable bracelets ($25 - $45) that are made in America and can help you survive whatever life throws at you.

We spent countless evenings spreading the word about our mission and our products through several social media channels, primarily Facebook. It was a great way to get the company out in front of thousands of people, and it cost us nothing but our time!

Jason McCarthy

Kurt Walchle

I have done most all social media myself for the first few years. I still keep a good handle on it, but we now have one employee dedicated to our social media presence.

Now in our sixth year of business, nearly 50% of our sales at Survival Straps stem from our social media efforts.

Social media has helped us to take what was a home-based business in 2007, and turn it into a thriving company in Jacksonville, Fla., with more than 50 employees by 2011.

Satisfied customers become ambassadors to spread the word about our product and mission through their personal social media channels. This has been huge for us.

Many of these customers post reviews and pictures on their own Facebook pages, which go out to hundreds of their Facebook friends. People are more likely to purchase things that come from the recommendation of their friends and family.

Social media has really opened up this opportunity. It has taken word of mouth marketing to a whole new level. The net result will be an increase in sales.

Social media also plays a crucial role for us in keeping the customer involved with our company, which builds brand loyalty. When people "like" our Facebook page, they have given us entrance into their personal world.

Survival Straps now has over 190,000 "likes." This means that whenever we post something, chances are most of these people will see our posting on their own page.

We also promote our product through Pinterest and announce new products throughTwitter.

A lot of companies make the mistake of letting their social media pages become a customer service channel. We try not to let this happen. Instead, we post customer-submitted stories and pictures, let them know what cool things we have coming in the future, and keep them informed on the direction of Survival Straps.

This has allowed us to keep our customers involved as we grow. Millions of people now rely on their Facebook page to get everything from their daily news, to movie reviews, to figuring out what products they want to purchase. I have witnessed a major change towards this over the last five years.

It's crucial to be in this space as millions of people everyday are turning to social media to find information instead of using the more traditional methods.

The bottom line is that social media is here to stay and small business should take advantage of the opportunity. People in America want involvement in the brands they love, and they want to help those companies become a success.

If you open up the tools of social media and are willing to be transparent with your customers, they will help you spread the word and propel your business.

Write to Smalltalk@wsj.com