The non-digital form of social networking — using a network of people to exchange information, enhance job prospects, or otherwise further one's career — began in the mid-70s (the earliest use of the phrase social network dates to 1976). It reached full flower during the go-go 80s, those heady quid-pro-quo, win-friends-and-influence-cocktail-party-people days. By the mid-90s, however, this form of networking faded from view, encrusted as it was in a thick layer of irony and comedians' jokes.

That's not to say that the idea and practice of networking no longer existed; "It's not what you know, it's who you know" remained the received (if rather clichéd) wisdom. It's just that social networking ceded the spotlight to computer networking, first in the local sense of hooking up nearby computers, and then in the broader sense of the Internet and its overused "network of networks" definition.

And that has now brought us full circle with the Internet updating and improving upon the idea of social networking. Millions of people have registered with sites such as Friendster.com and Myspace.com. In most cases you can only sign up if you're invited by a friend or colleague who is already registered. Each new member is asked to provide a profile of who they are: their interests, hobbies, skills, professional affiliations, and so on. The other members can search on these profiles and use the results to contact people who might be able to help them out. Nowadays, it's not what you know, it's who you can find online

Why Social Networks?

Social networking is different. While community pages have a strong effect, over half the impact of the social networking value to businesses comes from the momentum effect that occurs when one consumer uses the business as a reference point in his or her own personal profile, or passes along the information to a friend.

"Social networking sites are among the fastest-growing, most-used sites on the Internet. They not only attract people but also hold their attention, impel them to contribute, and bring them back time and again."

Social networking isn’t just a message sent from a business to a consumer (B2C) with the impact ending with the consumer who receives it. The initial communication is B2C, then the message takes on a life of its own as consumers use it, forward it, and share it C2C (consumer to consumer). The value of social networking extends to increases in advocacy and loyalty.

Social network marketing is the future of advertising because it combines the power of viral word of mouth marketing with the efficiency of the internet. No business can afford not to be on the social network grid. It’s the reason businesses of all sizes, from Fortune 500 to the plumber who never set up a website, are embracing its cost effective power to deliver fast sales results.