17 Nov 2008

Networking benefits firms, expert says

Businesses should consider the benefits that online networking will have on their operations and potential profitability, it has been suggested.

According to Martin Warner, co-founder of TalkBizNow.com, building relationships with contacts is a vital element of business activity and this gives firms a fundamental reason to consider online networking.

Whereas networking website like Facebook will focus on social issues, business networking websites enable firms to promote themselves, research the market and give their corporate history and reputation a business identity on the web, he suggested.

"Business networking is about using that information to add value to your contacts," Mr Warner added.

Last month, a report entitled Network Citizens: Power and Responsibility at Work by independent thinktank Demos in conjunction with Orange advised that social and professional networking could be welcomed by employers.

Both can have an impact on a company's profitability and online networking could help many smaller firms survive the economic downturn, the study suggested.