How do you Value your Digital Assets?
When you think of the assets of your business you might list things from your balance sheet such as:
- cash on hand
- furniture & equipment
Or qualitative items such as
- strong team
- great product
- environmentally friendly
What about your Online Presence? Your Brand? Your Digital Imprint? These items are assets of your business. And they all have value. Your website, your SEO, your social media presence. Online reviews, online reputation, email lists, social media following. All have value.
I was working with a company recently that went through selling their business. I assisted in preparing reports showing analytics from their Website and Social Media Platforms – and because of their strong Online Presence the valuation of their business was HIGHER. They literally sold their business for more money because of their excellent website & social media.
The work that goes into a professional, consistent online presence not only assists your business grow, reach its goals, attract talented employees it also becomes part of the GOODWILL of your business therefore a very important ASSET of your business.
Every single positive action that happens online about your business ADDS to the goodwill of your business.
Every single negative action that happens online about your business SUBTRACTS from the goodwill (value of your business)
How important is your Online Strategy? How important is Reputation Management? How important are your Social Media Efforts? How up to date is your Website?
If you are a physical business how often do you clean….how often do you count your inventory……
Social Media Succeeds Long Term, Not Short Term
A successful social media strategy is a long term ongoing function of your business which should be treated just as important as any other asset of your business. Success on social media is the result of consistent long term efforts. Your social media accounts will grow month over month in conjunction with your business.
Short term efforts on social media, if abandoned will actually damage your business. Inconsistent posting, abandoned social platforms, and random posting is just a recipe for failure….overall.
“For businesses today, there are two digital elements they need to get the most exposure for their audiences: a website and a social media presence. While there are many other marketing outlets that could be as important as those two, we’d argue that those are the two must-haves. Think about it: there are 1.96 billion people who have at least one social media account, and there’s a very good chance that some of them are your audience. “
So how do you actually put a value to your social media efforts? What is the value of a like. Here is a very handy & interesting Calculator powered by Hubspot:
This is a great calculator and based on my industry – B2B……..Business to Business Leads are actually valued at up to $350 per LIKE on social media! In general I’ve seen the value of a “like” or “follower” at approx $1.00 each. So if you have 1000 followers on Facebook it hypothetically increases the valuation of your business by $1000.
If one of your goals is to position your business for sale one day in the future, paying careful attention to the value of your Digital Assets will help you get the most value for your business during the sale.
If your goal is not necessarily to sell your business, having the “value” of your digital assets as part of your strategy plan will help you move forward towards your growth goals because it will help define your strategy. For example, if you are working on growing your Twitter account and your goals are to reach 1000 followers and then increase it 10% each month, you can feel rewarded that each new follower you get is worth at least $1 to your business bottom line.
So when you are working on your digital marketing strategy, keep this in mind, that each action you do is affecting a valuable digital asset of your business…………so invest wisely.