It’s not politeness that I’m after here so zip it until I’m done.
The line of thought or ideal that I’m at odds with today is the position of players on Empire Avenue (EAv) who feel that is their duty, almost to the point of moral imperative, to please their shareholders at all costs. Who cares if they sell you, you already spent their money!
“Oh but when people sell my shares my price goes down!”
Unless you’re the quasi-celebrity mogul of a social media empire *cough* Pirillo *cough* you are not likely to going to have any legitimate aspirations of leading that particular statistical category on EAv. Time to get real and be honest with yourself. Identify what your real and tangible goals are in the social stock market game.
O.k., now that you’ve picked yourself up off of that bar stool and wiped your salty tears from the rim of your pilsner, let’s get down to the realities of stock ownership; why we sell stock and, more importantly, why we buy stock.
What you say?
There are two (2) reasons to follow someone on any social network:
1. You like them. You’re either interested in them as a human being (their friendship, their expertise, or even their celebrity) or you are interested in their content. In any case this is the entire point of social media.
2. You’re trying to game something. Be it Klout score or Empire Avenue dividends or WHATEVER you are only interested in gaining something by making that connection.
Do you want to hear something that will really bake your noodle? If the bulk of your connections fall into that second category then you are probably very frustrated that your dividends aren’t where you think they should be and your share price isn’t going to be either.
Back to the topic of buying and selling. If you have decided that you are going to sell stock on EAv or clean up your Twitter stream where do you think those cuts are coming from? If you’re selling contact #1 then I’m sorry but you’re an idiot. Person number one is far more likely to respond to your posts, retweet your witty commentary, share your cat photos AND refer you to their friends who would also like your posts, your witty commentary, and yes, even your cat photos.
No, you’re an idiot.
Given the math explained in previous posts we know that user interaction accounts for roughly 70% of the formula used when the Empire Avenue Market Makers calculate how much they are going to pay your shareholders each night. But wait, what attracted those shareholders in the first place? See 1 and 2 above. If your share holders fall into category #2 then THEY are idiots and again, you’ve already spent their money so who cares if they sell your shares or unfollow you?
In a nutshell, the concept of ROI in Empire Avenue is ludicrous. If you are a #2 and you are only buying and selling to other #2′s you are only laying shingles on your own glass ceiling (it’s a compound metaphor, live a little). Buy up, sell down. Buy good contacts who enjoy your content and engage with you on a regular basis, sell the Jane Fonda’s and spammers.
So what really matters?
Here’s an example.
Let’s say we have two stocks, a Type 1 player that we’ll call “Ms. M” and a Type 2 player that we’ll call “Mr. S”.
Ms. M - Her price is 175e/share and her divs are 1.30e/share – she leaves you 2 tweets, 3 comments, and 5 likes every day, endorsed all your blogs and bought 50 of your shares. She is also and established blogger and networker so you are probably going to blow your wad on Ms. M and lay down the 110,250 to max out here shares in your portfolio.
Mr. S – His price is 289e/share – and his divs are an astounding 2.30e/share. You created lists in Twitter just to avoid his 50 tweets an hour promoting his SEO startup, hounded you every day for 3 weeks until you bought as many of his shares as he bought of yours, and then sold you the next day.
Pretty obvious who is going to give you a better return, no? Why would you buy the #2 stock, that you know deep down in the sub-cockle regions of your heart, that you’re going to get sick of and eventually sell?
Think like a shareholder when you buy and stop thanking your shareholders for buying and holding you! They buy your stock because it benefits them a LOT more than it does you. You spent their money, now work on the relationships!
The data is all there, the point is made. Now it’s up to you to dislodge your brain from the inane ROI concepts running rampant and start ENJOYING the time you spend online. Produce your content and be a quality contact.
The sky’s the limit.