We’ve all been impacted by the global financial crisis in some shape or form. As we uncover the reasons behind the current chaos (this is the one of the best related posts I’ve read), one theme that keeps repeating is investment in risky vehicles. Many seemed solid at the time, based on constructs like the Gaussian copula function. Or at a personal level, carrying a manageable balance from month-to-month on a couple credit cards (perhaps in addition to an adjustable-rate mortgage). Now we know better…right?
Let’s pause for a second – you are tracking the activity of your personal brand, right? As Lord Kelvin said, if you want to manage it, you must be able to measure it. You can get started with this framework for measuring social media.
- Aggressive. Sites that are hardly known, but offer a chance for you to reap big gains by being an early adopter. People who were early on Twitter and FriendFeed have been able to make a name for themselves as guides. On the downside, your investment may disappear if the site goes bankrupt, e.g. ma.gnolia or Pownce.
- Growth. Sites that have reached critical mass and close to mainstream adoption. For example, LinkedIn, MySpace, and Facebook. These are closer to dividend plays – they offer value from the existing network and connections going forward. On the downside, these assets can fall out of favor and lose value rapidly, e.g. Friendster.
- Conservative. Tactics that don’t benefit from network leverage, but generate solid returns. For example, having your own domain and mapping it to your blog’s URL. On the downside, it takes a lot of hard work to build these positions.