I recently met a small business owner who proudly described his marketing strategy to me: “I’m focusing entirely on social media because it’s free.”

“What do you mean by free?” I asked.

“Well…” he said, “I don’t have to pay for postage or advertising or email software or anything like that. I just set up accounts on Facebook, Twitter, and LinkedIn and go from there.”

“How are you updating those accounts? Who’s posting the updates? Who’s devising the strategy?” I asked.

“We all chip in when we have time,” he said.

“How’s it going? Are you seeing good results?” I asked.

Long pause…”Hard to tell,” he said. “I’m not sure.”

When it comes to social media — or any form of marketing for that matter — there is no such thing as a free lunch. Executing a social media strategy requires good planning, lots of time and effort, and careful analysis to determine return on investment. None of the above is free.

You have to calculate the cost of your employees’ and your time. Sure, you don’t pay to set up a Facebook account. But you pay your employees. And, if you’re thinking you can run a successful social media campaign with an unpaid intern (or your teenage son when he’s not doing his homework or playing video games),  you’re setting yourself up for failure.

I understand the need for businesses to control costs. And I understand the benefits of lower-cost digital marketing channels. Indeed, email marketing is a great medium, in part, because it costs less than other mediums.

But free is not really free when it comes to social media or any other marketing channel.

When devising a marketing strategy, you have to consider the return, not just the cost. I’d rather spend $500 to make $600 than spend $10 to make $11.

Social media should be part of your marketing mix, but not because it’s “free.” You should integrate social media with other marketing channels — email, your web site, offline media, etc. And you should be prepared to invest some resources to make it work — either dedicated employees who can generate positive return from the effort or third-party consultants who can do it for you.

As you drive to work tomorrow, consider this idea: Get rid of your car and walk to work each day. If you walked from your home to your workplace each day, you would save huge sums of money. No gas. No car repairs. No insurance. Getting to work would be free! But would your business be better for the cost savings? Would you accomplish as much each day?

John Reese, one of the world’s top internet marketers, quit twitter yesterday.  He left behind 25,000 followers! In a note to his email list, Reese said, “About a year ago, I really loved Twitter.  It was a lot of fun and it was great for communicating with people and for getting into all sorts of discussions. But as Twitter has grown, it’s become full of NOISE. Even, though, my follower count has risen, the response to my tweets has been on a steady decline.”

In his final Twitter posts on March 1, Reese said the response rate to his tweets has declined 75% from its peak. He checked with other marketers who reported similar declines. He said he will focus his social media efforts on Facebook (I happen to agree that you should focus most of your social media energy on Facebook).

So…should we all quit Twitter? Reese is a master of traffic generation. He knows how to drive traffic to his site and convert that traffic to sales. I trust his judgment…

But I don’t think “quit Twitter now” is the lesson to be learned from Reese’s actions. The key takeaway for me: Measure your results! Reese walks away with confidence because he knows his conversion rate has declined by 75%. When he posts a link to Twitter, he measures the number of clicks. He measures the number of people who click then register for his email list. He measures the number of people who click and then purchase his products. He measures the time he spends on Twitter (and thus the cost). So he can calculate his investment against the return. The numbers simply don’t work for him.

Does Twitter work for you? How do you know? What are you trying to accomplish with your tweets?

Reese is right about the noise on Twitter. Many tweeters spend countless hours posting trivial stuff…for what? What are your business goals? How do your tweets serve those goals? How do you measure your success?

At the very least, you should use a URL shortening program such as bit.ly that lets you measure click-throughs. Better yet, include tracking software on your site (such as Google analytics) that tracks where your Twitter traffic goes once it reaches your site. Don’t guess. Measure.

In a previous post, I said businesses ignore social media at their own peril. I still believe that. But then and now, I cautioned that you should engage in social media only if you have a purpose.

My goal is to strengthen my company’s reputation as a leading resource for interactive marketing solutions and tools. Occasionally, I’ll link to pages on my web site, where visitors download tips. This serves the same goal, plus people who visit that page can sign up for my email list. That helps me achieve my goal to identify, acquire and convert new leads. The bottom line: Begin by familiarizing yourself with Twitter and having some fun. As you continue with Twitter, ask yourself, “Why am I doing this?” If your answer is not in line with specific business goals, you probably can find better ways to kill time.

Do I plan to quit Twitter? Not yet. But I know that if I stick with Twitter, I’ll be able to justify the decision, and if I eventually quit, I’ll know exactly why.

While Snickers, Doritos, Go Daddy, Budweiser and the other usual suspects get props for their entertaining Super Bowl ads, I award my top prize to an ad that few are discussing: Honda’s “Everybody Knows Somebody…”

In case you missed it:  The spot opened with a still shot of a couple leaning against a Honda vehicle, parked beside a lake. A women’s voice says, “My boyfriend has one.” As the image slides to the left, a man’s voice (presumably the “boyfriend”) says, “My older sister has one.” A new image slides into the screen with a young woman (the “older sister” and two young children). A child’s voice says, “She has two kids.” A woman’s voice (the older sister with the two children) says, “My college roommate…” as a new photo of a different woman with kids slides into view. Then a photo of an older couple appears as another woman (the college roommate) says, “Our neighbors…”

And on it goes…A scrolling film strip of different people — different ages, various races, appearing in front of different size homes, standing next to their Hondas — naming people they know who “have one.”

“Our neighbors…My daughter…My husband has one…The fella I work with…on so on…”

As the filmstrip ends, the spokesperson declares: “Everybody knows somebody who loves a Honda. Who do you know?”

Then the address for Honda’s Facebook page appears on the screen: facebook.com/honda

Go there and you’ll see a page with more than 300,000 fans (as of Feb. 10)!

I love this ad for several reasons. First, in a simple but brilliant way, it uses social proof to persuade people to choose Honda. “Social proof” is the persuasion principle that says people tend to follow the crowd — even those who like to think of themselves as rebels.

Everybody knows somebody who loves a Honda. And the ad represents the enormous range of Honda-lovers — young, old, rich, poor, black, white. Marketing that effectively employs social proof  dares the target to make a choice: Are you with us or are you going to stand outside the social norm? The tug is strong, and Honda applies it subtly but forcefully in this ad.

Secondly, the ad has a great call to action: Go to our facebook page and share your story with us. I didn’t check Honda’s fan page after the game, but I’m sure there were far fewer than the 300,000+ fans Honda has today.

Honda practiced what we so often preach: Your marketing should not be solely about extending your brand or enhancing your image. With interactive technology, you can make targets act immediately with simple, low-risk calls to action.

People aren’t running from their houses after the Super Bowl to buy a Honda, and the company knows that. But Honda also knows that people who might eventually buy — the people we call the “maybes” — will be warmer prospects if the company can interact with them. So Honda asked them to do a simple thing that didn’t require people to sit with a car salesman or take much risk — visit our facebook page.

Now Honda can communicate with those 300,000+ fans. Without that call to action, Honda would have had no connection with these people until and unless they chose to act.

That’s a great example of using social proof to persuade people to act, and using a simple call-to-action to connect with and market to the maybes

Want to know more about social proof and other persuasion principles? Check out 7 Proven Ways to Make Your Marketing Messages More Persuasive, available for download at www.marketvolt.com/persuasion.