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Lesson 12:

Like Us On Facebook

“The thing that we are trying to do at Facebook, is just help people

connect and communicate more efficiently.”

-Mark Zuckerberg, CEO of Facebook

It seems that everywhere you look you see “Like Us on Facebook.” Why do these businesses care if you like them? They have a lot of good reasons. According to one study, there are 174 good reasons. A 2013 Syncapse study suggested that each like was worth $174 to the brand, and this was up 28 percent from 2010. $174 was only an average and the values ranged from $70 per like for Coke to $1,613 per like for BMW. The study considered multiple values such as brand loyalty, recommendations, and acquisition costs.[1] Social media experts disagree about the actual amount, but the precise figure is not important. The point is that Facebook is a great way to advertise and even monetize your brand. 
What is Facebook?
Facebook, the incredibly successful company that we know today, began terribly. Facemash, Facebook’s predecessor, caused a bit of a stir at Harvard when it was first launched. According to an article in the Harvard Crimson,
Zuckerberg, a computer science concentratror, said he created the site—www.facemash.com—by hacking into House online facebooks and compiling ID photos onto his website, allowing viewers to vote for the “hotter” of two randomly chosen photos or rate the looks of students in a particular House against fellow-residents… But by Sunday night, outrage from individuals and student groups led Zuckerberg, who said he never expected such widespread publicity, to shut down the site for good.[2]
Though Facebook was originally a private site for Harvard students, eventually it expanded to other Ivy League campuses, and then to the wider college community.
The company launched in 2004.  Mark Zuckerberg and his Harvard roommates Chris Hughes, Andrew McCollum, Dustin Moskovitz, and Eduardo Saverin founded Facebook, or www.thefacebook.com. The company changed its name to Facebook in 2005. By 2006, Facebook opened to the general public. Anyone over the age of 13 with an email address could have an account, and this led to exponential growth. The company went public on May 18, 2012.
Facebook recently passed 1.5 billion monthly active users.[3] This is the rough equivalent of the entire populations of North America, South America, and Europe. If Facebook was its own country, it would be the largest country on the planet.
Business or Pleasure?
How you choose to use Facebook is up to you. Personally, I use Facebook primarily as a tool to keep up with friends and family. It is also an outlet where I socialize and discuss current events. I do not add “friends” unless they are actually friends. In this way, I separate my personal and professional lives.
Though I maintain this distinction, I am under no illusion that I have privacy in any meaningful sense. Please heed this warning: if anyone in your network can see what you post, assume that a motivated researcher can find it. Do not think that your privacy settings protect you or that you can post anything with impunity on Facebook. Ill-advised words or pictures, hidden behind the weak veil of Facebook’s privacy settings, have destroyed many careers. As I wrote in my textbook, The Bottom Line in Leadership and Management:
As you think about online usage, remember the Washington Post Test. Simply stated, never do anything you would not be willing to see reported on the front page of the newspaper. This includes what you do online or anything you send by email.
Related to the Washington Post Test might be another long-term approach we will call the Biography Test. The premise is simple: in 30 years when so-and-so writes a best selling memoir, how do you want to be portrayed to the world? There is nothing you can do about how the other person paints you, but if you have shown kindness, you will likely be viewed as kind. If you have cheated this person, expect your crimes to be exposed to the world. Moreover, since you cannot predict who will write their memoirs and who will not, you need to treat everyone fairly or run the risk of being placed in a negative light for all the world to see. Think of the biography test as a public report card for the Golden Rule.[4]
Though my primary use of Facebook is personal, Facebook also allows me to create a professional page for business. By nature, this page will be public. Instead of a private network, this business page is intended to be as open as possible. This allows me to expand my presence on the world’s largest social network.
Please More People
Peter F. Drucker, the father of modern management, famously told us that the only real purpose of a business was “to create a customer.”[5] Economists tell us that your value to the marketplace is directly tied to how many people you please with your product or service. All other things being equal, the profit you reap is related to the size of the market that you please. That is why Facebook is currently worth $322 billion.[6] To put that in perspective, it is $100 Billion more than Wal-Mart.[7]
Mark Zuckerberg, Facebook’s co-founder, is worth nearly $50 billion because he designed a service that is used by one of every five people on Earth.[8]  Read that again—he designed a service that is used by one of every five people on Earth.
Bill Gates is the richest man in the world. He is currently worth $78 Billion.[9] Why? He is responsible for another product—Microsoft Windows—which is used by roughly 1.5 billion people. Gates has been at it this since the 1975, which is why he is the richest man in the world.[10]
Larry page and Sergey Brin, co-founders of Google, are worth roughly $35 Billion each.[11]  Google has over a billion users too, and all of these companies are working on expanding their market by helping wire the planet with the internet. They all understand that larger markets mean more business. That is why you need to have a business presence in the largest market on the planet.
Getting Started on Facebook for Business
To create a Facebook page for business, you have to be on Facebook. I am assuming you are on Facebook already. According to Pew research, 58 percent of the adult population, or roughly 75 percent of the population that is on the Internet, is on Facebook.[12] It is no surprise that 91 percent of Millennials are on Facebook. Even 31 percent of American senior citizens are on Facebook.[13] If you do not have a Facebook account, ask anyone you know who is on the internet. You have a better than 4 in 5 chance that they will have their own account.[14]
To begin, open up your Facebook page. On the left side of the screen you will see a menu bar. Look for the pages tab and click Create Page.
Facebook will offer a number of options. You can create a page for a Local Business or Place, a Company, Organization or Institution, a Brand of Product, an Artist, Band or Public Figure, Entertainment, or Cause or Community.
As I was preparing this lesson, I realized that CSU did not have a page for the Graduate School, so I built one and I captured screenshots along the way.
For this example, I chose Company, Organization or Institution, but similar logic applies if you choose a Local Business or Place.  Facebook will then walk you through a number of simple menus that help you build your page. You will work through 4 stages: About, Profile Picture, Add to Favorites, and Preferred Page Audience.

  • About: You have a few lines to tell the world about your product or service. Be concise. Your limited to approximately 140 characters—the maximum size of a tweet on Twitter.
  • Profile Picture: This picture should be a company logo or something representative of your company. Please note that these pictures should be 180 x 180 pixels or Facebook will reject the pictures.
  • Add to Favorites: This just means that it is added to one of your favorites.
  • Preferred Page Audience: This allows Facebook to help you focus your message on specific demographics. You can limit to location (e.g., Charleston, South Carolina), age, gender, and specific interests.

When you have completed those steps, Facebook allows you to customize your page with the Cover Photo, Contact Information, and the opportunities to create a Call to Action and to Promote your Page.

  • Cover Photo When you have completed these four profile steps, you need to add a Cover Photo and Contact Information. If you have a large picture, you can reposition it, within given limits. This second background photo is similar to what Facebook allows for individual accounts.
  • Contact Information: Your final required step is to add contact information. Include phone, email, website, and address. Remember, you want others to find you.
  • Create a Call to Action: Facebook allows business pages to create a call to action. You can customize this feature to most effectively reach your target your market. Choose Contact Us to send an email, Call Now for a telephone number, Learn More to redirect them to your website, or a number of other options.

In the Graduate School’s case, the most effective call to action leads prospective students to our website to find more information about our programs. For that reason, I chose Learn More for the call to action.

  • Promoting Your Page: Facebook will then ask you if you want to promote your page. In fact, Facebook will give you ample opportunities to promote your page. This is one of the ways that they monetize their platform, and this is one of the reasons that Facebook is worth $322 billion. Let’s set this aside for right now because we will talk about page promotion and Facebook ads in another lesson.

How Facebook’s Business Page Works
From this point, a business page works just like your personal page. You post interesting things that you think your target market might enjoy.  They can like or share what you post. However, there is one major difference.
Instead of inviting friends, you must accumulate likes. When someone likes your business page, they will see the content you post in their newsfeed. This is a serious responsibility, and one you shouldn’t take lightly if you hope to grow your business and promote your brand on Facebook. According to PCWorld,
The potential reach of a Facebook page is huge, as half of its users login every day. Facebook studies show that people interact with their favorite brands on Facebook more than any other social network, are more likely to recommend a brand after becoming a fan of it on Facebook, and are more likely to purchase a product after becoming a fan.[15]
Aftermath
Now that you know how to set up a Facebook for business page, all you have to do is start accumulating $174 likes, right? Well, it’s not quite that simple, according to wired magazine. To assume the getting the like will lead to $174 in revenue is to confuse cause and effect. They write:
Don’t be fooled by a ‘like’ on a page – just because someone likes a page and sees the shared content, it doesn’t automatically mean he or she is spending an average of $174 with the brand.…The true meaning of a ‘like’ is a representation of brand recognition and loyalty that is worth much more than a simple monetary figure. The ‘likes’ well-known brands accumulate are typically from existing customers, proving the magnitude of brand recognition, as loyal customers tend to be lifelong customers and true advocates for the brand, which amounts to so much more than $174.[16]
Actionable items:
Are you on Facebook? If not, join the other 1.5 billion humans who are. If you do not have a Facebook for business account, what is stopping you? Use what you have learned in this lesson create a Facebook business account. Write down when you will create your Facebook for Business page.
Before your create your business account, write down what you want it to do, who you want to reach, and what type of content you will need to post in order to reach your customers.
References
Bill Gates. (n.d.). Forbes. The World’s Billionaires. Retrieved from http://www.forbes.com/profile/bill-gates/
By the numbers: 200+ Amazing Faceboook Statistics (2016, January). DMR Digital Stats/Gadgets. Retrieved from  http://expandedramblings.com/index.php/by-the-numbers-17-amazing-facebook-stats/
Drucker, P. F. (2001). The essential Drucker: Selections from the management works of Peter F. Drucker. New York: HarperBusiness. p. 20.
Finney, J. (2014). Microsoft by the numbers: A look into how many people are using Microsoft’s products and services. WinBeta: Your Source for Windows 10 and Microsoft News. Retrieved from http://www.winbeta.org/news/microsoft-numbers-look-how-many-people-are-using-microsofts-products-and-services
Gerdes, D. L. (2011). The bottom line: Lessons in leadership and management. Lynchburg, VA: Bright Images.
Google Finance: Stock market quotes, news, currency conversions & more. (n.d.). Google. Retrieved March 17, 2016 from https://www.google.com/finance?q=facebook&ei=z-PqVriiJsXpmAHgn4PYCw
Google Finance: Stock market quotes, news, currency conversions & more. (n.d.). Google. Retrieved March 17, 2016 from https://www.google.com/finance?q=walmart&ei=1OPqVtmtA4GimAGn8Zi4Dw
Kettmann, C. (2013, July). Is a Facebook ‘Like’ worth $174? Probably not. Retrieved from http://www.wired.com/insights/2013/07/is-a-facebook-like-worth-174-probably-not/
Larry Page. (n.d.). Forbes. The World’s Billionaires. Retrieved from http://www.forbes.com/profile/larry-page/?list=billionaires
Mark Zuckerberg. (n.d.). Forbes. The World’s Billionaires. Retrieved from http://www.forbes.com/profile/mark-zuckerberg/
Schwartz, B. (2003, November 4). Hot or not? Website briefly judges looks. Harvard Crimson. Retrieved from http://www.thecrimson.com/article/2003/11/4/hot-or-not-website-briefly-judges/
Sergey Brin. (n.d.). Forbes. The World’s Billionaires. Retrieved from http://www.forbes.com/profile/sergey-brin/?list=billionaires
The value of a Facebook fan to consumer brands increased 28% to $174 since 2010. (2013, April 16). Syncapse. Retrieved from http://www.syncapse.com/value-facebook-fan-consumer-brands-174/#.Vu3J4RIrJo5
Weise, E. (2015). Your mom and 58% of Americans are on Facebook. USA Today. Retrieved from http://www.usatoday.com/story/tech/2015/01/09/pew-survey-social-media-facebook-linkedin-twitter-instagram-pinterest/21461381/
Woodbridge, K. (2011). How to Make a Facebook Page for Your Small Business. PCWorld. Retrieved from http://www.pcworld.com/article/240258/how_to_make_a_facebook_page_for_your_small_business.html
End Notes
[1] The value of a Facebook fan to consumer brands increased 28% to $174 since 2010. (2013, April 16). Syncapse. Retrieved from http://www.syncapse.com/value-facebook-fan-consumer-brands-174/#.Vu3J4RIrJo5
[2] Schwartz, B. (2003, November 4). Hot or not? Website briefly judges looks. Harvard Crimson. Retrieved from http://www.thecrimson.com/article/2003/11/4/hot-or-not-website-briefly-judges/
[3] By the numbers: 200+ Amazing Faceboook Statistics (2016, January). DMR Digital Stats/Gadgets. Retrieved from  http://expandedramblings.com/index.php/by-the-numbers-17-amazing-facebook-stats/
[4] Gerdes, D. L. (2011). The bottom line: Lessons in leadership and management. Lynchburg, VA: Bright Images.
[5] Drucker, P. F. (2001). The essential Drucker: Selections from the management works of Peter F. Drucker. New York: HarperBusiness. p. 20.
[6] Google Finance: Stock market quotes, news, currency conversions & more. (n.d.). Google. Retrieved March 17, 2016 from https://www.google.com/finance?q=facebook&ei=z-PqVriiJsXpmAHgn4PYCw
[7]  Google Finance: Stock market quotes, news, currency conversions & more. (n.d.). Google. Retrieved March 17, 2016 from https://www.google.com/finance?q=walmart&ei=1OPqVtmtA4GimAGn8Zi4Dw
[8] Mark Zuckerberg. (n.d.). Forbes. The World’s Billionaires. Retrieved from http://www.forbes.com/profile/mark-zuckerberg/
[9] Bill Gates. (n.d.). Forbes. The World’s Billionaires. Retrieved from http://www.forbes.com/profile/bill-gates/
[10] http://www.winbeta.org/news/microsoft-numbers-look-how-many-people-are-using-microsofts-products-and-services
[11] Larry Page. (n.d.). Forbes. The World’s Billionaires. Retrieved from http://www.forbes.com/profile/larry-page/?list=billionaires; Sergey Brin. (n.d.). Forbes. The World’s Billionaires. Retrieved from http://www.forbes.com/profile/sergey-brin/?list=billionaires
[12] Weise, E. (2015). Your mom and 58% of Americans are on Facebook. USA Today. Retrieved from http://www.usatoday.com/story/tech/2015/01/09/pew-survey-social-media-facebook-linkedin-twitter-instagram-pinterest/21461381/
[13] By the numbers: 200+ Amazing Faceboook Statistics (2016, January). DMR Digital Stats/Gadgets. Retrieved from  http://expandedramblings.com/index.php/by-the-numbers-17-amazing-facebook-stats/
[14] Weise, E. (2015). Your mom and 58% of Americans are on Facebook. USA Today. Retrieved from http://www.usatoday.com/story/tech/2015/01/09/pew-survey-social-media-facebook-linkedin-twitter-instagram-pinterest/21461381/
[15] Woodbridge, K. (2011). How to Make a Facebook Page for Your Small Business. PCWorld. Retrieved from http://www.pcworld.com/article/240258/how_to_make_a_facebook_page_for_your_small_business.html
[16] Kettmann, C. (2013, July). Is a Facebook ‘Like’ worth $174? Probably not. Retrieved from http://www.wired.com/insights/2013/07/is-a-facebook-like-worth-174-probably-not/
 
Content written by Darin Gerdes of Charleston Southern University and copyrighted by Great Business Networking