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Book Review: Social Nation

Business, Reviews

I recently had an opportunity to read Social Nation: How to harness the power of Social Media to attract customers, motivate employees & grow your business by Barry Libert.  Heckuva title.

Libert is the the CEO at Mzinga, which is a company that connects other companies–and their customers–using social media to collaborate and communicate.  Social media is, quite simply, using the internet to drive interactive communication.  This includes Twitter, Facebook, and forums.  Sometimes, it’s just discussion, sometimes, it’s sharing user-generated content.

Social Nation “will show you, as an employee, customer or partner, how to use new social technologies, make yourself heard, and produce better products and services.”   It bills itself as a “complete toolbox” for social media.   Does it match the hype? Let’s see.

The book is broken into three sections.

Part 1: The Future of Business is Social

Libert asserts that the future of business is social.   That is obviously true, to a degree. A solid viral marketing campaign can drive more eyeball to a product than a full-page spread in the New York Time or a 30-second spot during Super Bowl halftime.  However, there are a lot–possibly a majority–of business-to-business companies that will gain no value from a social media campaign.   Would a regional supplier with an exclusive distributorship for a top-name line of faucets benefit from being on Twitter?  No.  On the other hand, 17% of our time online is spent on social applications and the fastest growing demographic on Facebook is 35 years old or older.  There is certainly some value to be gained by have a social media presence in some markets.

This section(all of chapter 3!) also contains a link to a test to determine your social media skills.   I haven’t taken the test, mainly because I don’t feel like registering for another site.  This struck me as nothing more than lead generation, which is a shame.  It could be a useful tool.

Part 2: Seven Principles for Building Your Social Nation

This section has seven chapters, containing 7 case studies that detail the 7 principle of social media, as defined by Libert and Mzinga.

The principles include:

  • Let the culture lead the way, as demonstrated by Zappos.com.
  • Involve your fans.  The big takeaway from chapter 8 is that, when you create a community, your job is to facilitate involvement, not to control it.  If you try to run it with an iron fist, it will choke and die.
  • Reward others and you will be rewarded. Apple lets developers keep 70% of the money they make in the app store.  That encourages developers to develop, making everyone more money.   Give.  Karma will take care of the rest.
  • There are 4 other principles, but some are just common sense, and I don’t want to give away the contents of the book.

Part 3: Start Today and Create Your Own Social Nation

aka

Chapter 11: How to Get Started and 10 Pitfalls to Avoid

Section 3 has just one chapter, but it’s a good one.    It explains the difference between followers and fans, the value of each and how to bond with each.   The difference?  Fans are actively involved.   Followers are far more passive.

This section/chapter also goes into some things to avoid, like abandoning a social media strategy too early, failing to market your business, underestimating the power(positive and negative) of a social network.

Is it worth getting the book?

Social Nation bills itself as a complete social media toolbox, but it falls a bit short.   The book tackles social media from a purely strategic point of view, ignoring the tactical concerns.   It’s clearly geared toward helping a company plan its social media strategy from a 10,000 foot perch.   For the people in the trenches, or anyone with a grasp of strategy that’s looking for the details on running a social media campaign, it’s not enough.  That said, if you are trying to plan a social media strategy, or you have no idea where to start, this is a great book for you.   It holds a lot of value, but stops some distance before “complete”.  Definitely worth a read if you are involved is social media planning.

Giveaway

I’m giving away Social Nation.   If you’d like to have a chance to get it, just leave a comment, telling me how you like to see companies use social media.  Fair warning, this is the book I read, so it’s “used”.   I take care of books, so you can’t tell that it’s used.

Publishers, Publicists, and Authors

If you have a book you’d like me to review, please contact me.

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Clearing Up Social Debt in 3 Steps

Finance

Debt can be thought of as a disease–probably social.  Most of the time, it was acquired through poor decision making, possibly while competing with your friends, occasionally after having a few too many, often as an ego boost.  Unfortunately, you can’t make it go away with a simple shot of penicillin.   It takes work, commitment and dedication.  Here are three steps to treating this particular affliction.

1.  Burn it, bash it, torch it, toss it, disinfect. Get rid of the things that enable you to accumulate debt.   If you keep using debt as debt, you will never have it all paid off.   That’s like only taking 3 days of a 10 day antibiotic.   Do you really want that itchy rash bloodsucking debt rearing its ugly head when you’ve got an important destination for your money?   Take steps to protect yourself. Wrap that debt up and keep it away.

2.  Quit buying stuff. Chances are, you have enough stuff.  Do you really need that Tusken Raider bobble-head or the brushed titanium spork?  They may make you feel better in the short term, but after breakfast, what have you gained?  A fleeting memory, a bit of cleanup, and an odd ache that you can’t quite explain to your friends.   Only buy the stuff you need, and make it things you will keep forever.  If you do need to indulge, hold off for 30 days to see if it’s really worthwhile.   If it’s really worth having, you can scratch that itch in a month with far fewer regrets.

3.  Spend less. This is the obvious one.  The simple one.  The one that makes breaking a heroin addiction look like a cake-walk(My apologies to recovering heroin addicts.  If you’re to the point that personal finance is important to you, you’ve come a long way.  Congratulations!).  Cut your bills, increase your income.  Do whatever it takes to lower your bottom line and raise your top line. Call your utilities.  If they are going to take your money, make them work for it.   If they can’t buy you drinks or lower your payments, get them out of your life.   There’s almost always an alternative.   Don’t be afraid to banish your toxic payments. Eliminate your debt payments.  This page has a useful guide to debt and how to clear it off.

Update:  This post has been included in the Festival of Frugality.

Make a Budget

Finance

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Image by r.lovewell via Flickr

In the past, I’ve gone through a detailed series of budget lessons demonstrating how to make a budget and showing my personal budget spreadsheet template.  If you weren’t here to see them develop, you probably haven’t seen them at all.    I’ve never built an actual index for those posts.

This is the master index of my budget planning resources.  As I develop more, this will grow.

Budget Lesson #1 – In this lesson, I go over how we handle discretionary income and I explain our modified envelope system.   The discretionary budget contains things like our grocery bill, or the clothes we buy.  We have near-total discretion over what is purchased, hence the name.

Budget Lesson #2 – Lesson #2 contains the details of our monthly bills.  These are the ones that are consistent, predictable, and actually due each month.  Most people take these for granted as the bills they have to pay, but it’s not true.   You can get almost all of your regular bills reduced just by asking.   You would also be surprised what you can do without, when properly motivated.

Budget Lesson #3 – This is where I explain how we deal with the non-monthly bills.  That is, the bills that have to be paid, but are not due on a monthly basis.  I also share the personal budget spreadsheet template I developed.   I am working on a few sample templates to match various imaginary scenarios.  If you’d like to be an anonymous case study, and get free help setting up a budget, let me know, please.

Budget Lesson #4 – In this lesson, I describe our “set-aside” funds for things that will need to be paid eventually, but not on a set schedule.  Sometimes, they are never actually due.   We set aside money for the parties we throw, for car repairs and for a number of other things.  A few of these items are outright optional, but they are part of what makes life fun.  You can’t make a budget without including some of the extras.

Budget Lesson #5 – This is the companion piece to lesson 2.   Learn how I’ve reduced–or attempted to reduce–each of these bills.   For the better part of two years, I called Dish Network every few months to ask for a discount.  For almost 2 years, it was granted.  Then one, day, they told me they were putting a note on our account to keep us from getting any more discounts, so I canceled.   100% discounts help us save more.

Budget Lesson #6 – This is the reduction companion to lesson 3.  These bills are harder to reduce.  Have you ever successfully gotten your property taxes lowered?

Budget Lesson #7 – This is the reduction companion to lesson 4.  Notice a pattern, yet?

Budget Lesson #8 – Here, completely out of order, is the reduction companion to lesson 1.   Watch as I magically reduce–or rationalize–our discretionary budget.

So, dear readers, what part of budgeting should I address next?

Debt Burnout

Finance

Burnout.
Image by LunaDiRimmel via Flickr

You’ve got a budget.  You’ve got a debt repayment plan.  You’ve been paying off your debt.  You’ve even paid off a few of your smaller debts.  Now you’re staring down the barrel of your big debts: your mortgage, a $30,000 credit card, maybe a car payment.  You’re looking at months of payments with no quick wins; no more watching your debts die every few months.  You’re in the middle of a very long slog.

All of the easy milestones have been reached and the next one is a year or more away.  This is when debt repayment gets hard.  How can you avoid getting burnt out doing the same thing, month after month, with no major visible progress?

1.  Keep your eye on the prize. Try focusing on the end result, while ignoring the time it takes to get there.  Do you have a reward planned for when you pay off your debt?  If not, consider that to be your new shining goal-post.  My wife and I plan on taking an Alaskan cruise when our debt is repaid.

2.  Ignore the prize. If #1 doesn’t work for you, try focusing on just the current month’s progress.  How much did you pay off this month?  Was it more than last month?

3.  Make micro-goals. Try breaking the long slog into bite-sized pieces.  How fast can you pay off the next $1000?  How many months will it take to pay off that TV you bought last year?  Sometimes, meeting a smaller goal can make the whole works feel like it’s going by faster.

4.  Take a snowball vacation. For just one month, take every dollar you would normally apply to your debt–except your required payments–and have some fun with it.  Take a weekend trip, have a fancy dinner, or pick up that video game system you’ve been eying.  Something.  Anything to take your mind off of your repayment plan for a while.   Be careful not to make this a habit or you will never get out of debt.

5.  Start a blog to share your pain.

A debt snowball is a long, intense process.  If you’re not careful, you can burn out and let the whole thing collapse.  How do you avoid burnout?

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Three Alternatives to a Budget

Finance

the envelope system: day one
Image by J. McPherskesen via Flickr

Budgets aren’t for everyone.  For some people, the very idea of trying to track where their money going is painful.  And that’s just the idea of tracking the money.  It gets far worse when you’ve got $10 budgeted for coffee, $12 for fast food, $66.50 for gas, and $0.75 for entertainment.  It’s can be hard to follow a strict budget for long.

If you know you need to track your money, and you also know that a strict, zero-based budget won’t work for you, what can you do?  Luckily, there are alternatives.

1. Hope and Pray. This is otherwise known as the “Call my bank everyday and see how close I am to over-drafting” system.  To fully embrace this system, you need to not only abandon a written–or even organized–budget, but you should also throw your checkbook register in the garbage.   Make sure you’ve got a good overdraft protection account attached to your checking account and let your money take care of itself.  This is the ultimate zen of personal finance.  Don’t stress or worry, just hope for the best.   This system works best if you make more money than Oprah and have modest tastes.  For those of us who have to watch our money a bit to make sure the month outlasts our money, this probably isn’t a great plan.

2. The Envelope System. To implement this system, you do need to create a basic budget so know what you are obligated to pay.  Once you have that done, take a stack of envelopes and label them for each item you have to pay.   Add another envelope for food, another for entertainment, and another for miscellaneous because there is always a miscellaneous.   Divide the money among the envelopes.   Now for the magic. When you have to spend something, take the money out of the appropriate envelope and spend it.  That’s it.  If, however, there isn’t enough money in the right envelope, but you still need to spend the money, you have to take it out of a different envelope and spend less on the category that lost money.

3.  Percentages. This is the simplest of the non-budget budgets.   Take 50% of your money and spend it on necessities, like the mortgage, food,  and utilities.   The next 30% goes to savings and retirement.  The last 20% is for fun or any other thing you want to spend it on.  This naturally works best if you are out of debt, but if not, just make sure most of the 20% fun money goes to repaying debt.   This system works best if your bills are automated and you will need to set up a basic budget first, so you can make sure your necessities come in under 50% of your income.

Not every budget plan will work for everyone, but there are always alternatives that can still help you manage your money.

How do you track your money?

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Ignore Your Budget

Finance

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Image by Boz Bros via Flickr

For the first year of our journey out of debt, we had a strict budget, with all of our discretionary money spent out of an envelope system.  We had an envelope for groceries, one for discretionary spending, one for clothes and one for baby crap.   At the beginning of the month, we’d divide the money into the envelopes according to our budget spreadsheet.  If we used a card for anything, we’d take a matching about of money out of the appropriate envelope and put it in a box to get reconciled the next month.

Ugh. Almost 2 years later, it has turned into too much work and too much nagging about everything either of us put on a card.

We decided to simplify the system a few months ago.   Now, we still have a budget.  It’s even a zero-based budget, but we ignore it.  We only look at it if something changes for the worse.  If something changes for the better, the extra money just gets automatically rolled into our debt snowball, so there’s no need to worry about updating the spreadsheet.

Instead of envelopes, we kind of eyeball it.   We budget $450 per month for groceries, so we aim to spend $100 on our weekly grocery run.  That leaves some room for losing track of how much we are putting in the cart, or a last minute addition to the list.  It also leaves room for our secondary grocery trip to buy bread and milk later in the week.  We do go through a lot of milk at my house.  We budget $55 per month for diapers, but the deal we are currently getting with Amazon Mom is only costing us $30.79 for 6 weeks of diapers.  We ignore the difference.

This—and our heavily automated bill pay and savings—lets us keep our finances on track, without stressing over every dollar or fighting over every little thing that comes home unplanned.   I used to fire up Quicken and balance the checkbook every week.  Now, that happens at the beginning of the month, usually.  If I forget, it doesn’t matter.  At the beginning of February, I balanced the checkbook for the first time in almost two months and we never came close to exercising our overdraft protection account.  In fact, we had some extra, so that got sent directly to our debt.

Overall, it’s been good to test out a new system.  We have almost no financial stress and managing our money takes about a couple of hours per month instead of per week.  It’s all win.

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