Time to bring this post back for a second round.

This post is the continuation of a discussion started on Marketing Profs’ LinkedIn group on July 7th. (If you don’t yet subscribe to the group, consider becoming a part of it.)

Today’s video is actually two videos in one:

The first half (Part 6 of our Social Media ROI series) deals with defining ROI once and for all.

The second half (Part 7 of our Social Media ROI series) starts touching on the “how” of calculating the ROI of Social Media by outlining the investment-action-reaction-impact-return narrative.

If the video doesn’t load for you, you can go watch it here.

Let me start today’s post with a confession: Like many people in the business world, I have abused the term “ROI” from time to time. Yes, I admit it, even I have used “ROI” as a relative term on a number of occasions in the past. I’m not proud of it, but there it is.

Here are some examples of what I am talking about:

• Q: What’s the ROI of adding 100 miles to my weekly cycling training?
• A: Faster race times.

• Q: What’s the ROI of writing better blog posts?
• A: More traffic on my blog.

It’s easy to do, especially since sometimes, what you invest into something isn’t necessarily $$$. Perhaps you invested sweat. Perhaps you invested time. Perhaps you invested emotions. It doesn’t really matter. The point is that when the currency is variable, how you measure the “I” in ROI becomes variable as well. For lack of a better term, you start to refer to any kind of positive outcome as “ROI” even when you shouldn’t. It’s an easy habit to fall into, and if you aren’t careful, your definition of ROI can begin to get a little fuzzy. So I get it: I understand why this is confusing to so many folks, especially when it gets thrown into the world of Social Media.

But I’ve also spent enough time with executives (on the client side) to know that when THEY talk about ROI, the currency is NOT relative. In business terms, the currency implied in any ROI question or discussion is cold hard cash. Period.

Marketing professionals need to understand this: If the investment (the “I”) is $$$, then the return also has to be $$$. It can’t be eyeballs or impressions or clickthroughs. You have to tie your results to a $ amount. Anything short of that, and you’re not proving your value to your boss or client.

It isn’t to say that eyeballs, impressions and clickthroughs aren’t important. They are. But they’re one link (of the action-reaction-outcome narrative) shy of ROI. (They don’t tie the investment to the actual return.)

The best way to explain that narrative is this way:

$ Investment by company –> Action –> Reaction –> Non-financial impact –> Financial impact $

As explained above in the video, the relationship between a company’s investment and the return on that investment pretty much looks like this:

What happens between the investment and the financial impact (the return on that investment) is VERY important. And we’ll talk about the importance of monitoring and measuring it in order to tie the investment to the associated financial impact (and ROI) in future posts. But for now, I want to focus on the fact that eyeballs, impressions, positive WOM and social mention, even click-throughs and net new visits to websites do not constitute relevant currency when we are talking about ROI. Social media is no different here than any other business endeavor in this regard.

Impressions, eyeballs, net new visitors, etc. are forms of non-financial impact. In order to determine ROI, you have to take them to the next step: How they affect financial impact. THEN and only then can you tie the original investment to the return (financial impact/outcome).

I know that bringing “media” measurement into the ROI equation is tempting , especially for folks with agency or media measurement backgrounds. That’s what the model has been for PR, Advertising and other marketing-specific firms for decades. And again media measurement is vital here, but when it comes to calculating ROI, that type of measurement is a lot like calculating a crop’s yield by estimating how many of X number of planted seeds will germinate come harvest time. It doesn’t work that way. You have to roll up your sleeves come harvest time *and physically count what the actual yield is. You actually have to do the work. ROI isn’t about potential. It’s about actual performance.

(*Luckily there is no seasonal constraint like a “harvest” in the business world, so ROI measurement – like most performance measurement – can be continuous.)

In order to adequately determine ROI, you must first understand how all the pieces fit. You have to see the entire equation, from start to finish. There is an order to how things happen, how, and why. You have to see how A leads to B leads to C in order to understand how an investment turns into a success or a failure, and to what degree. You also have to understand that the value of a pair of eyeballs, of an impression, is subjective until that pair of eyeballs actually does something. Then the body attached to that pair of eyeballs becomes one of three things: A browser, an influencer or a transacting customer. The first two don’t actualize a financial impact (yet). The third does. That’s where we want to focus when dealing with ROI.

Though we can infer and assign an estimated $ value to browsers and influencers, these values are subjective at best , usually measured in hindsight, and subject to change at any moment for any reason. So their value still falls into the category of non-actualized potential for now. (We will look at the financial impact of influencers in an upcoming post. No worries.) For the purpose of ROI calculation, however, you want to work with cold hard numbers. Not estimates, not potential, not yet-to-happen transactions, but “actualized dollars.” Real revenue from actual sales. Financial returns you can take to the bank and tie step by step through the above chain back to the initial investment.

(Incidentally, financial impact (ROI) manifests itself either as increased revenue or cost savings. Sometimes, ROI is revenue-neutral but cut costs internally. The model I just described above applies ti revenue-generated ROI.)

All of this to say that we have to be VERY careful not to a) mistake non-financial impact with ROI, and b) not to try and redefine “ROI” when dealing with business execs. (They won’t buy into “Return on Influence” or “Return on Interest” for very long, and anyone using these terms runs the risk of losing credibility with pragmatic decision makers in the C-suite.) Social Media is fun, but this is not a game. If a client doesn’t ask about ROI, great! Awesome. They probably get how Social Media is going to help them build relationships with customers and improve everything about their business. So to them, ROI is implied. It’s understood. It isn’t something they are going to worry about anytime soon. But when a client DOES ask about ROI, you have to a) understand what they are asking, and b) know how to adequately answer their questions and put measurement systems in place that will suit their needs and particular culture.

I hope this was helpful. Next, we’ll talk about the importance of timelines in the ROI determination process. (The next piece of the puzzle.)

By the way, if the video didn’t load properly for you or if you are accessing this post from a mobile device, you can go watch the video here (thanks Viddler).

Building a Social Media program is about more than presence, community management and engagement. And in spite of what some “experts” may have told you, it certainly is about more than having a Facebook page, a twitter account and some videos on YouTube.

The reality of the thing is that it takes more than that to plug social media into your business. Much more. That intern managing your tweets right now doesn’t have the experience or the skills yet. That PR superstar you just hired out of LA or New York or Boston can do some good, but no matter how hard they try, they take your social media program so far. Just like your customer service manager and your CMO and your Director of Digital Media. No matter how smart they are, they only have some of the pieces of that puzzle… and so much time to try and figure out the rest. (Not exactly a master plan, is it.)

Truly plugging Social Media into an organization – into the enterprise, even – is a complex endeavor. It isn’t purely a marketing function, nor is it purely a customer service function or a community management function or a business intelligence function. There are lots of moving parts to this, some strategic, others operational. Some analytical, others tactical: HR and Legal need to be brought up to speed on several levels (especially now that the FTC has released its guidelines for blogging and social media use), the C-suite needs to clearly understand both the opportunities and the risks associated with Social Media in order to make appropriate decisions regarding the future of their companies. Vice Presidents, directors and managers need to understand how applying certain Social Media strategies and tactics to their existing activities could yield solid results in the quarters to come. And on and on and on.

Frankly, if you haven’t worked in the enterprise space, if you haven’t spent years closely working with sales managers, marketing managers, customer service managers, product managers, engineering managers, HR managers, if you haven’t spent years reporting directly to a CEO or at least a Senior VP – in other words, if you haven’t had real experience building programs within enterprise space companies and managing brands hands-on, working across silos, even with all the blogging and tweeting experience in the world, I don’t see how you can hope to know how to build, integrate, manage and measure a 360 social media program for a company. And certainly not in the enterprise space.

It takes a very unique background and skill-set to be able to deliver this kind of thing, and very few people can actually blend 1. a deep understanding of the social media space, 2. real enterprise-class program development and management experience, and 3. 360 brand management experience, from product ideation and development all the way to end-of-life-cycle marketing communications.

People who know how to do this in the US, I can count on the fingers of one hand. There aren’t many of us yet. And given the need for companies to understand how to properly plug social media into their business (and start enjoying positive results fast), that’s a big problem.

If my “fingers of one hand” remark seems like an exaggeration, go back in time just a few months and ask every social media “consultant” or “expert” in your address book to briefly shed some light on a few random (and simple) components of a Social Media program… like how to tie R.O.I. measurement into Social Media activities, or how to structure an enterprise-wide Twitter presence. Until those few of us who know how to do this came along and spelled it out for them, it seems that the vast majority of these “experts” didn’t have a clue. Scary, considering these types of things are among the most simple components of any social media program’s structure.

To address that problem, I am partnering with a pretty solid group of experienced marketing and PR directors, Director-level social media practitioners, management consultants, business managers and other experts to bring businesses exactly this kind of knowledge in 2010, not just in a consulting format but in a training format as well. The training specifically is what I want to bring up here today because it’s the most accessible of the two – both from cost -effectiveness and timeframe perspectives. This video should help explain what we’ve been working on:

As the video explains, we’ll soon have a website, a full schedule of cities (and countries) where our full-day trainings will take place throughout 2010, along with a ton of valuable information you’ll want to check out.

Perhaps the most important component of the training program will be the content of the program itself: Essentially a social media program development, integration, management and measurement playbook. As attendees, whether you decide to take copious notes (which I suggest you do) or simply watch the presentation decks over and over again, you will essentially walk away with everything you need to build a social media program for your organizations (or your clients’ organizations for that matter).

Pretty solid, right?

As mentioned in my previous post, the plan is to launch Red Chair trainings ahead of schedule in London on December 4th instead of waiting for 2010 as originally planned. It’s a little short notice for a lot of businesses in the London area (not a whole lot of time for decision-makers to a) find out about it and b) make plans to attend), so we’ll play the schedule by ear. If we can fill up the training by then, great. If not, we’ll go back to the original schedule to give the London business community time to fit it into their calendar. No big deal. One thing I should mention about the December 4th event, however: The group discounts are insanely good. Take advantage of them now if you can. (I doubt the group discounts will be as good in 2010.)

If you want the December 4th event to happen, make sure you sign up asap. Beg your boss, call a friend, invite a client or two, whatever works. Definitely take advantage of the 1+1, 1+2 and other discounts. Click here to sign up now, or click on the image below.

Update: After receiving numerous requests for Red Chair London to be held in early 2010 instead of December 2009, we  have decided to move the event to a date that will accommodate everyone. Thanks a lot for your feedback. You guys rock. I look forward to an even bigger Red Chair event in London just in a few months.

The current state of conversations in regards to Social Media and Business

Okay, look. I don’t mean to step on anyone’s toes here, but how many times do business managers hungry for real Social Media know-how have to suffer through another “Social Media is what’s next” presentation before someone actually decides to help them answer real questions and solve real problems?

Yes. We get it already. Social Media is the future of now. It’s the answer to all of your old-school marketing problems. The holy grail of business growth. It’s all about people and conversations and relationships, don’t you know. Okay, fine. So now let’s get on with it: How the hell does a company actually put Social Media into play?

Before I go on, if your answer includes any of the following words, I may have to reach across the internets and smack you upside the head: FaceBook, Twitter, Blog, YouTube. (No, no, no and no.) Let’s take a giant step backwards here, because if your idea of developing a Social Media program for a company of any size essentially consists of creating a series of embassies on the most popular social platforms on the web, you haven’t just put the cart ahead of the horse, you’ve pretty much squashed it like a bug.

Let me be as clear as I can be about this: Having a Facebook fan page, a twitter account, a YouTube channel and a blog aren’t forward thinking. This is the default position now. The absolute minimum. If you aren’t already here, you’ve already shown that your business is grossly out of touch with the rest of the world (and dare I say, your market?). And by default, so are you. You’ve fallen behind. And if your company does proudly display those little social badges, if indeed you do have a presence on Twitter, FaceBook, YouTube and the blogosphere, congratulations: You’re doing the same thing everyone else is, which is to say that you are merely here.

Having a Social Media presence nowadays is merely the equivalent of what being listed in the yellow pages meant ten years ago. It simply isn’t enough to be there. And if you believe it is, you have seriously underestimated the situation.

Don’t get me wrong: The vast majority of business managers and C-suite executives still need to be shown that Social Media isn’t just a silly fad. That it is a legitimate business discipline worthy of not only investment but special attention. And perhaps most importantly, that by not understanding that Social Media fits in their business toolkit, they will begin to lose increasingly large chunks of market share (among other things) to their smarter, more strategically-minded competitors as early as H1 of 2010. These are realities and facts that still need to be conveyed to decision-makers in the business world. No question.

But the message has already reached a good number of them. So now what? You’ve convinced them to focus on Social Media, but aside from “get on facebook, twitter, youtube and blogs and start engaging,” you haven’t really given them a whole lot to go on. For the benefit of those folks, why don’t we switch gears and meet them where they want us to: In the real and complex world of “how the hell do we actually build this in our own organization?”

Let’s inject a little structure and order into the Social Media for business discussion:

First, let’s get a couple of things straight about the nature of Social Media when it comes to operations (yes, actually “doing” instead of just talking about how great it is):

1. The idea that Social Media professionals are one-size-fits-all needs to disappear. Understand that despite what you may have been told, Social Media practitioners aren’t all community managers and engagement aficionados. Some are data analysts and others are business strategists, while some specialize in operational management, market research, marketing communications or any number of commonly found business functions. Yes, that’s right: Social Media practitioners probably aren’t social media experts at all. They’re simply professionals who use social media because they understand its value to their job and organization.

The topic of incorporating social media know-how into existing organizational roles (rather than creating new layers of superfluous social media expertise to piggy-back on existing functions)  is one that we will revisit often in the coming months.

So the lesson here is that if your organization seems to a) suffer from a knowledge gap when it comes to Social Media, and b) filling that gap with dozens, if not hundreds of new employees seems daunting, don’t fret: Focus on training and development first and foremost. Don’t worry about trying to hire a bunch of unemployed marketeers with “social media” roles strategically added to their resumes in the last 18 months. That will get you nowhere fast. There’s a better way. (More on that in a minute.)

2. Effective, sustainable, scalable social media programs all have a basic underlying framework (hinted at by the X-Box Live avatars assembled in the image above.) At its simplest, you are looking at four major building blocks and operational elements:

• Social Media program development (a strategy-heavy function)
• Social Media program integration (almost exclusively an ops piece, especially in the enterprise space)
• Social Media program management (the broadest of the three, basically dealing with the execution of the program itself. Some examples of management functions are listed in the image above.)
• Social Media program measurement (an analytical function which requires little explanation given the amount of time I have already devoted to explaining FRY, ROI, and non-financial impact).

When you start actually building the structure of a Social Media program, especially for a large/enterprise space organization, things get complex fast.  But let’s learn how to walk before we start running marathons, okay? Not everyone here is ready to graduate from “isn’t social media just another marketing channel?” so we’ll move slowly out of respect for them.

First things first: Recognizing that in order to build a proper Social Media program within an organization, you must first start with the understanding that these four core elements need to be present in order for things to work properly. Just having a Social Media director and an engagement team won’t cut it. All you’re likely to end up with is a decent management piece with perhaps some light strategy,  completely accidental integration thanks to an IT guy or two, and some made-up measurement based on whatever metrics seem to be popular on the Twitternets that week. Sorry but that’s not good enough.

If a half-assed DIY-style Social Media program appeals to you, your boss and your customers, by all means, have fun with that. But if you are the type of manager or business leader with even an ounce of vision,  professionalism (and sense of self-preservation), you already know that winging it isn’t really going to produce the results you are expected to deliver.

The alternative is to try and do it right: Actually building an effective and sustainable social media program within your organization by integrating social media (embedding it, even) into every department and business function – and doing so with purpose.

That’s all fine and good, but what if you need help? (No worries. I have you covered.):

So where can you turn for help? Unfortunately, that can sometimes be hard to tell. On the one hand, you have the thousands of self-appointed Social Media “gurus” selling everything from rehashed presentation decks and derivative white papers to stale webinars about essentially nothing. (Thanks for charging me $650 for information I could have gotten for free just by reading Mashable for twenty minutes a week. Great.) And don’t even get me started on the hacks who shamelessly steal my work and that of others and try to pass it off as their own. (We know who you are. You aren’t fooling anybody.)

So how do you tell the good ones from the frauds? Experience. Luck. Savvy. In fairness, you could actually get lucky and find one who knows how to do this (with enough money and enough time, who knows,) but the odds aren’t in your favor.

You could also keep hoping that the operational knowledge you seek will emerge from the various social media conferences you keep attending. And to some extent, yes, over time, you will pick up enough nuggets to become dangerous. No question. But it could take a while. Industry conferences have their value, but real operational training isn’t usually on the menu.

And of course, you could partner with a reputable consulting firm whose team of of experts will guide you every step of the way, from choosing the right measurement tools to the way you should develop engagement strategies. If you ‘re ready for that, have found a partner you know you can work with and have the budget for it, it’s go time. But not everyone is ready or able to go that route quite yet.

A fourth option is to let those of us who know how to do this teach you how without asking you to break the bank or further burden your schedule. We aren’t talking about “boot camps” here. (The idea isn’t to throw as much information at you as we can in a few hours and see how much of it you can retain.) By the same token, you don’t want a training programs to be so light that you walk away from it with solid theoretical knowledge but no practical knowledge. There isn’t a whole lot of value to training if you can’t actually put that training to good use.  And to be honest, there’s only so much ground you can cover even with a full day of training. So a group of us put our heads together over the last few months and decided to create something to fill that gap for you and do it right. (Which is to say, do it exceptionally well.) The objective is then to blend training and consulting in a way that makes sense for everyone.

Enter the Red Chair Group:

There will be plenty of time for me to get into what the Red Chair Group is, who will be involved and what types of services we’ll offer in the coming weeks. For now, all I can tell you is that our official launch is scheduled for December of 2009, that our primary objective will be to provide expert level assistance to businesses in need of strategic and operational program management, and that geographically speaking, we will cover a lot of ground. (I haven’t been this excited about a project/venture in a very long time, so it’s pretty hard for me to keep from spilling the beans.)

To that end, one of the first things the Red Chair Group will be launching is a series of executive training programs specifically designed to teach C-suite execs, business managers and agency directors how to develop, integrate, manage and measure social media programs (what we have been talking about in this post). These trainings will be carefully structured day-long events held in major cities around the world. We are currently in talks with partners in 20 key cities to bring Red Chair events to your doorstep.

(I forgot to mention: The whole idea is to bring these training events to you so you don’t have to come to us. This is yet another way we thought we could keep your budget as intact as possible.)

Cities already being added to the 2010 schedule:

• Chicago
• San Francisco
• New York
• Seattle
• Atlanta
• Boston
• Portland
• Philadelphia
• Paris
• Houston
• Sydney
• Hong Kong
• Charlotte
• Orlando
• Toronto
• Brussels
• Tokyo

(If you want us to add your city to the list, let me know. We’ll chat.)

I look forward to sharing more about how the Red Chair Group’s plans to help companies of all sizes operationalize social media. I am usually a pretty quiet guy (no, really), but I have to admit that I am having a hard time containing my excitement about this: To know that businesses are finally going to be able to cut through the social media noise and BS in part thanks to Red Chair makes me feel pretty good.

2010 is definitely going to be a fun year.

Cheers.

PS: Let’s give credit where credit is due. Special thanks to Kristi Colvin and Doug Cone for the amazing work they are already doing on the Red Chair Group’s branding and website. You guys are already producing outstanding work.

This year, RED CHAIR Portland consists of two events

Day One: A full day session designed for C-suite Executives and Senior Level Managers. (Keep reading. You’re on the right page.)

Day Two: RED CHAIR ‘Lite’ (a half-day event on Friday 12 March) designed for Department Managers and Account Level professionals. If you are looking for that event, click here.

RED CHAIR Portland is designed to teach business leaders in the Greater Portland area how to properly build, integrate, manage and measure Social Media programs. This full day session will provide the framework, insight and step-by-step methodology needed to properly operationalize Social Media programs for organizations of all sizes. What follows is a brief breakdown of what the program will cover:

1. Strategy: How to properly develop, plan and set goals for social media programs and campaigns, both in the short term and long term. This will be a mostly strategic discussion.
2. Integration: How to effectively plan for the deployment and integration of a social media program across the organization, regardless of size or complexity. This mostly operational discussion will cover topics ranging from dealing with departmental silos to how to create an internal structure for the program within the organization.
3. Management: Once it is in place, how to manage a Social Media program, from monitoring, engagement and community management to customer support and online reputation management. This mostly tactical discussion will cover the true “how to” of program management and proper execution, from legal considerations to flawless execution.
4. Measurement: The final portion of the session will focus on how to measure success, from setting KPIs to the almighty R.O.I., as well as drawing the correct insights from what may seem like overwhelming amounts of data. This mostly analytical discussion will focus on establishing effective measurement systems across the organisation, choosing the correct tools and metrics for the job, properly reporting successes and failures, and how to use data to ensure continuous improvement across the organization.

Who should attend:

1. Business executives wishing to learn how to effectively plan for, develop, deploy and manage Social Media programs across complex organizations.
2. Agency principals and director-level staff wishing to learn how to build sustainable Social Media programs for their clients and/or their own firms.
3. Director-level executives and subject-matter experts (SMEs) already using Social Media in a frequent capacity, but in need of help in planning the next phase of their Social Media program.
4. SMEs wishing to further their real-world understanding of Social Media planning and management to better serve larger clients.

Venue details will follow.

Event Details:

In this full day training program, participants will learn how to effectively plan for, build, integrate, manage and measure social media programs for mid-to-large sized organizations. The day will be divided into four sessions, each focusing on a specific element of Social Media program planning and management: Development, integration, management and measurement. Each session will begin with an explanation of fundamental concepts, then drill down into a rich and actionable level of detail that participants will be able to take back to their business and put into action.

The atmosphere of the sessions will be fast-paced but highly collaborative and hands-on. Expect to take copious notes (we’ll have special notebooks and extra pens for you) and have all of your questions answered. Note: Breakfast, lunch and afternoon tea/coffee will be served to all participants.

This advanced training program is part of an international series aimed at teaching Best Practices in Social Media program development, integration, management and measurement to business executives, communications professionals and Social Media directors from around the world.

We look forward to seeing you at RED CHAIR Portland.

If the registration link at the top of the page doesn’t work for you, you can painlessly register for the event through EventBrite by clicking here.

As I watched Scott Gould, Drew Ellis, Trey Pennington, Daren Forsyth and Maz Nadjm address a capacity crowd at Exeter’s  #LikeMinds conference two weeks ago, it occurred to me that not all conferences are created equal. In fact, I realized that conferences tend to fall into two very distinct categories: Conferences that provide real value, and conferences that provide very little value. Before I go on, let it be said that #LikeMinds falls squarely into the first category.

Since I was one of the speakers at #LikeMinds, it’s natural for some of you to assume that I might be… biased, right? Fair enough. I can understand how you might think that. But the truth is that I have spoken at a number of conferences now, and I have no problem telling you that not all of them have fallen into the “valuable” category. In other words, if #LikeMinds were just another conference with little value, I might not necessarily come out and say so, but I also wouldn’t tell you it is something when it really isn’t.

Moving forward, you can feel pretty confident that I am speaking my mind here, and not giving credit where none or little is due.

So back to the topic at hand: The sold-out Like Minds Conference in Exeter, Devon (UK) on October 16th. The line of attendees outside before the doors officially opened, pretty much wrapping around the block. The impressive roster of speakers and panelists spanning two continents. The spectacular venue. The stunning live video stream. The twitter wall. The specific focus of the event. The global vibe. And perhaps most importantly, the £25 admission fee.

Yes, that’s right. Only £25. And £10 for students, as I recall.

Meanwhile, all across the US, social media-themed conferences typically charge what… $200? $500? $650? And for what? Wait… don’t answer that. We’ll get back to that in a sec.

Don’t get me wrong: I have no problem with conferences, social media or otherwise, charging $200 or even $650 to attendees. All I ask is that in return for those types of fees, these events offer at least $200 or $650 in value (respectively). It’s only fair. Heck, if a conference wants to charge $2,000 for admission, as long as it provides equal or greater value, have at it. In truth, the Social media world needs high level conferences of this type, and I would GLADLY spend $2K to attend a social media summit that actually delivered real value.*

No, my beef with rapidly growing number of “social media conferences” is that their $250 or $650 admission fee only buys attendees about $25 worth of value, as opposed to serious conferences (like #LikeMinds) that easily provide $650 worth of value for a mere £25.

Moreover, the fact that pointless social media conferences seem to be popping up everywhere has me scratching my head and wondering when the idiocy will stop. Let me ask you a simple question: Do we really need a social media conferences every week?

Of course we don’t. But with everyone and their brother suddenly looking to rebrand themselves as social media gurus, the demand for a accelerated conference circuit has hit a kind of fever pitch in 2009, with many organizers and speakers feeding on a self-serving loop of crap. Explained in as few words as I can, the former are looking to make a quick buck off the Social Media craze while the latter are so desperate for exposure that they will do just about anything for ten minutes of it.

Watch this video and we’ll continue the discussion in a few minutes:

If the video doesn’t launch for you, go watch it here.

Okay, now that you’re back, let’s continue our little discussion, starting with some typical low-value conference dynamics:

A. The problem with an increasing number of social media conferences: An upside-down value model

As we just discussed, on the one hand, you have the growing army of would-be social media gurus looking to make a name for themselves. This is the crowd furiously sending emails and DMs to conference organizers, begging them for opportunities to speak at their events to get a few conference gigs on their resumes.

On the other hand, conference organizers see in this endless stream of guru wannabes a welcome cash cow: Those confident enough to speak will gladly fill up session after session of their conference schedules for free in exchange for exposure. Enter the “Return on Engagement”, “Tweet your way to success” and “What will we call Social Media in 2010″ breakouts. Wonderful. As if the internet weren’t already filled with these kinds of remedial turds posing as legitimate expertise.

The rest, those not speaking, are evidently more than happy to part with $200+ for the opportunity to rub elbows with internet-famous bloggers and perhaps befriend an A-lister or two in the hopes of raising their own profile in the SM world.

Below, some X-Box Live friends help me illustrate a typical high yield, low value conference model: A small number of speakers with valuable content the organizer actually has to pay isn’t enough to offset the large number of speakers with derivative content who will gladly fill content gaps for free. This model minimizes cost, maximizes profit, and guarantees a relatively low conference value for attendees. This is quickly becoming the norm across North America. No wonder most businesses look upon the social media “crowd” as a joke.

When you realize that an event that attracts 400 people at $200 per admission can gross $80,000, it isn’t hard to see why these things are popping up left and right, and for no other reason than to generate revenue. And as long as you, the folks who attend these types of events, are willing to fork out two bills to sit in a series of hotel meeting rooms for the better part of a day to listen to 20-40 minute presentations about how wonderful FaceBook is, how many people use Twitter, or how this company or that organization “engage” with customers using free tools you use in the exact same way and with greater success, these types of pointless events will continue to sprout all over the place. The margins are just too good for people to just stop putting them on out of… professional integrity.

What’s the solution? (Aside from putting on better conferences and events, that is?) A gut check would be a nice start. Stop going to every social media conference on the calendar. Become a little smarter and pickier about your choices. Start by looking at the overall roster of speakers. Then look for an actual point: Does the conference have a topic? A theme? A thread? Or is it just a mash of speakers covering every topic from how to network on LinkedIn to measuring web traffic using Google Analytics? Be smarter. Do your homework. Learn to spot the signs that a conference exists solely to extract money from your wallet.

Acceptable price-point: $0 – $75/day.

Next: A slightly better breed of conference.

B. The balanced Social Media Conference model: Investing in solid content pays off in the long run

In the model below, you have a more balanced approach: The ratio of established speakers (assuming relevant and actionable content) to aspiring speaker is slightly greater. In this scenario, the conference organizer is at least attempting to balance profit and content by mixing the really good stuff with some cheap filler. (Yes, kind of like the average bottle of whiskey on the middle shelf behind the bar.) This  balanced, democratized model ensures that attendees will enjoy a much greater quality of content  and networking for their money than the first model would have provided:

As mentioned in the previous section, this type of conference should also have a point. This can be demonstrated either by creating an overall theme for the conference (measurement, integration in the enterprise, customer service, best practices, etc.) or several specific tracks within the conference that will allow CMOs, CSMs, ITMs and other attendees with unique needs to go learn specific things as opposed to being forced to sit through a disjointed soup of “worthless FaceBook is great”  and “let’s measure ROI in impressions” presentations.

Incidentally, conferences that charge upwards of $300 for presentations lasting less than 45 minutes are a waste of your time. Nothing can be covered in depth in under 30 minutes. If you spot a preponderance of 10-15 minute presentations on the conference schedule, skip it altogether.

So to recap, this type of conference’s three signature features are: a) at least as many respectable speakers as unknown speakers, b) a point/some kind of thematic structure, and c) presentations lasting more than 10-20 minutes apiece.

Acceptable price-point: $0 – $600/day, with $600 pushing towards truly outstanding content.

Next: The very best kind of conference – The summit.

C. The pinnacle of Social Media conference models: The best practices-style Summit

In this model, the organizer’s priority is obvious: Assembling the best minds on any given topic in the same place at the same time. The quality of the presentations, panels and discussions should be high as every speaker has been hand-picked for the quality of their content and delivery. This type of conference/summit is the rare gem that actually puts you in the same room as the world’s brightest minds and true expert. Bring a notebook or two, because you will probably be going back to the office with hundreds of pages of notes, all of which worth pure gold. If one of them pops up in your neck of the woods and you have an opportunity to attend, clear your calendar and get your ticket. No matter what this event charges, you will get your money’s worth by attending and learning as much as you can.

Unfortunately, many of these types of event are either by invitation only or put on for membership-only organizations, so make sure you are properly connected at all times. If you aren’t cool enough to receive an invitation, at least know someone who can help you secure one on the DL.

Acceptable price-point: $500 – $5,000/day depending on the level of the summit. Some focus on CEOs while others cater to VP-level execs. The price can vary greatly from one to the other. On average, shoot for $1,000 to $1,500./day (Considering that most of the presenters charge upwards of $2,000 per day, you’re getting a bargain even at the very highest end of that spectrum.)

Why you will now only see me at conferences with a legitimate reason for being:

Why am I telling you all this? Two reasons:

The first is to give you a heads-up: Before you start spending your summer vacation money on a half dozen worthless social media conferences over the course of the next 6 months, be aware that you could easily be throwing your money away on a bunch of hot air. Do your homework. Don’t just attend social media conferences because they’re there. Research the speakers, the topics, and more importantly, ask yourselves this simple question: What will I learn there that I couldn’t learn for free or on my own by spending a little quiet time with our friend Google? Stop paying unscrupulous conference organizers to put on crap events. Please.

The second is to let you know that effective immediately, I will not be participating in any conference that provides little or no value to attendees (you guys), and this for three pretty simple reasons:

1. I don’t need the imaginary validation some people believe comes from becoming a staple of the US social media conference circuit. It’s a self-perpetuating ego trip. Nothing more. It’s completely meaningless and stupid.
2. There comes a point where spending more time speaking than actually doing becomes counterproductive… and frankly, a little suspect. Anyone who has time to speak at 40+ conferences per year doesn’t have a real business. They’re a professional speaker, not a professional doer. No thanks. That isn’t who I am.
3. There is absolutely no good reason whatsoever why I should ever lend my good name to the type of event that isn’t truly serious about helping businesses from around the world better understand, develop, integrate, manage and measure social media. That’s what I do. That’s what I am passionate about. If speaking at an event doesn’t serve that function, then it is a waste of my time and yours. Why should I lend my name to an event like that?

In short (and in case you hadn’t figured it out) I am serious about what I do, which these days basically consists in helping as many businesses as possible not only recover from this recession but emerge from it in better shape than they entered it. What it does not consist in is trying to become Mr. hot sh*t Social Media guru by showing up at every odd conference I can smooth-talk my way into. So aligning myself to every tom, dick and harry who puts on a horse and pony social media conference makes no sense at all in my world. I hope you guys won’t hold that against me.

And to be clear, if some of you want to try and become the next big thing on the Social Media conference circuit, I won’t hold it against you. I’m sure there’s money to be made there in the next couple of years, and the masses need good advice and insights into how social media can help them improve their lives. But if you don’t take that role seriously, if you aren’t responsible with the trust the public puts in you and your relative expertise, don’t be surprised if you pop up on the wrong end of my bullsh*t radar.

Conference organizers, you have your work cut out for you. If you want to create relevant events that will endure for years to come, I’ll be happy to help. By all means, let’s talk. But if you’re in this game to make a quick buck, don’t even bother sending me an email. I want nothing to do with what you stand for, and we’ll all see you on your way down.

In closing…

Both the #Likeminds team and the audience/participants reminded me that conferences with a purpose are as wonderful and valuable as conferences without one are a waste of time and an insult to our collective intelligence. When the most valuable information to come out of a marquee social media conference seems to be that “social media “will probably be called “new media” next year, it doesn’t take a genius to figure out that we’ve lost our way as a professional community. We can do better. We should do better. We have to do better.

After having attended three social media conferences while in the UK and a funeral while in France (yes, we’ll talk more about that as well), I came to the realization that the level of discourse about Social Media in the US needs a serious kick to the arse, and fast. This isn’t a game. This isn’t a fad. While the Twitternets were busy RT’ing an article that a distracted Fast Company blogger wrote about all the cool parties he went to in Vegas for BlogWorld as if it were gold, while pundits discussed the finer nuances of whether or not “Social Media” should change its name to “New Media” in 2010, our European counterparts were busy asking hard questions about how to actually plug social technologies and processes into the enterprise. How to sell it to their bosses. How to actually measure it properly. How to budget and plan for it. How to train their staff to use it. How to create a working social media management structure within their organizations. How to adapt their management cultures to the new realities of a perpetually networked and socially-empowered world. In other words, how to move forward from here.

Yep, while the US social media conference circuit was busy navel-gazing and playing rock star to its own eager fishbowl, real businesses with real problems were asking real questions, out there in the real world, where companies make and lose real money, where jobs are either created or lost, and where the world of business either adopts new ideas or moves on without giving it a second thought. Not next year, not in six months but right now. This week. Today.

In light of this, I hope everyone had a blast partying like rock stars in Vegas. Where’s the next party? Los Angeles? New York? Miami?

We can do better. We’re going to do better. And yeah, we’re going to start right now.

To be continued…

* Such a global best-practices summit is currently in the works. Details soon.