For the past few years, people have been telling you that you have to be involved in social networking, but no one has told you why. What is the benefit, and is there any money in it?

Money is probably the bottom line to you, so I’ll get that out of the way first: Yes. And no.

Social networking in places like Twitter, Facebook, on this and other blogs, in videos and on forums is not about direct profits. It’s about brand building. It’s about taking your brand and putting it at the forefront of the minds of the right people.

There isn’t much point in directing marketing efforts for geriatric products to college kids, and vice versa. A skilled marketer knows who their audience is, and how best to speak to them.

Twitter for example is home to the 30-something middle classes who like technology. You know what else those people like? Coffee. By further expanding their marketing efforts into Twitter, Starbucks has seen their profits grow despite the recession.

A recent study put forth by ENGAGEMENTdb highlights efforts made by top companies in the social networking arena, and how those efforts have paid off. Starbucks ranked number one for best use of social networking. They are everywhere, offering an interactive experience to their customers along with that cup of coffee.

Blogs, Twitter, Facebook - you name it, Starbucks has a presence. Their Facebook fan page, for example, has over 3 million fans. That’s a lot of cups of coffee!

Their company is huge, and their marketing department is a force to be reckoned with. Small and medium business on the other hand, often needs to engage outside help to build this kind of brand recognition. More and more marketing and PR companies are offering this as a service to their clients. Social networking has become a staple of brand building, and as the web expands from 2.0 to 3.0, the demand for social marketing will increase.