Twitter can be a profitable tool for marketing

Sean Cantrell, owner of Marshall Mechanical LLC. on West Leigh Street in Richmond, heard a presentation about using Twitter, the online social networking site, as a business tool.

Cantrell went home after listening to David Saunders of Madison+Main, a new media and advertising firm, and discussed what he heard with his wife.

He decided to try it out. He created a free Twitter account and got started. He posted "tweets" -- a message that is up to 140 characters-long -- on his Twitter page: SeanHVAC.

He posted articles on his heating, air conditioning and plumbing company's Web site and linked them to his Twitter page. He even posted pictures of jobs that he performed.

Soon, he started getting responses -- tweets from interested people. Then he started getting calls. Now, about six months after creating his Twitter account, "we've probably gotten over $50,000 in revenues as a result of Twitter."

Cantrell's experience proves what Saunders said: Twitter can be a profitable marketing and networking tool.

Graham Lawler, founder of Ultra Light Startups, a group of technology entrepreneurs who collaborate to help each other launch startups quicker and cheaper, said people even start businesses using Twitter technology as their platform.

For example, StockTwits is a Web site where stockbrokers and everyday people talk in real time about their trades. Users must have a Twitter account.

Lawler also cited CrunchBase.com's database of 162 companies that have a Twitter-based business model.

If you have a bright new business idea that you could launch using Twitter as the platform, follow these two tips:

• Figure out the pain point of potential customers -- or what pain-in-the-neck thing could your product or service resolve for potential customers?

Whatever it is, they must not only want to use it, they must be willing to pay enough that your company could make a profit.

Instead of just thinking that you have a cool idea -- and that if you build it they will come -- think of a business that will make something less painful for people, and that they'll pay for.

• Try to become profitable before seeking funding.

Many online entrepreneurs seek venture capital in order to fund their business. Then, they come under heavy pressure to produce big profits fast.

A lot of people who start up online think they have a great idea, and they spend a lot of time and energy building their business, Lawler said.

Much later, they learn that nobody wants to buy the product, or won't buy enough to generate a profit.

Instead of seeking funding first, "get that first dollar in as quickly as possible, not for the revenue worth, but for the information contained in the sale."

"It tells what people are willing to pay for it. If you spend $10 to bring in $1, it tells you that you need to change your business model. It shows you what's going to work and not work," he said.

. . .

If you're thinking of how your existing business might profit from having a Twitter account, follow this advice from Cantrell:

Be vigilant. "It takes time and a lot of dedication to monitor it," he said. "I try to do it every day." Sometimes he spends 10 minutes minding his Twitter page. Other times, "I'm on for a few hours."

The reward: "We've gotten several contracts," he said. "You start a dialogue on Twitter, the next thing you know, you have a phone call or e-mail."

. . .

Madison+Main's Saunders said, "Smart companies will think about customer engagement." Twitter "is a way to get instant feedback, a way to thank them for their business, a way to address their questions and concerns," he said.

Contact Iris Taylor at (804) 649-6349 or .