Using Social Networks to Create your Business Market

Chandesh Parekh

Last month’s Inc. magazine featured clothing company Threadless on the front cover, a company founded by 2 college drop-outs (an interesting trend in itself – so many successful start-ups have college drop-outs at the helm) Jake Nickell and Jeffrey Kalmikoff.

Founded in 2000, Threadless is set to hit $5million is sales this year selling, wait for it, t-shirts! Yep, and they’ve never had a single design that hasn’t  sold out!

So how has Threadless managed to sell out every design? By asking their market what designs they’d buy! Simple!

Using a social network, Threadless runs design competitions and whichever designs are most popular make it onto a t-shirt. The t-shirts are then sold through the same social network to the very people who voted for the designs. This way Threadless supply the market with exactly what they demanded in the first place!

The power of social networking is only now becoming apparent and businesses are beginning to understand just how well ‘word-of-mouth’ marketing, the best and cheapest kind of marketing, works within the semi-porous walls of a social network.

Most think of social networks as the domain of bored teenagers but considering that Facebook, a social network that targets the 25 to 35 demographic, outpaced MySpace, a social network that does target teenagers, in May with the most number of unique visits many will need to re-assess their opinions of the importance of social networking to business.

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