Wake up and smell the coffee people because it has not only happened but I can go so far as to say if you’re not on Facebook then your site have an overwhelming climb to get to the top.  The San Francisco Chronicle sums it up best:

Facebook directs more online users than Google 

This “friend-casting” of information has helped propel Facebook into a major force in directing traffic around the Web.A big part of the Facebook experience is how friends and family share Web links to interesting news stories, photos, videos and Internet sites.

According to Web measurement firm Compete Inc., Facebook has passed search-engine giant Google to become the top source for traffic to major portals like Yahoo and MSN, and is among the leaders for other types of sites.

This trend is shifting the way Web site operators approach online marketing, even as Google takes steps to move into the social-media world.

Some experts say social media could become the Internet’s next search engine.

“People are spending less time navigating the Internet on their own and are now navigating the Internet based on their friends’ recommendations or their friends’ activities,” said Dave Yovanno, chief executive of Gigya Inc., a Palo Alto firm that offers social-media services. “That’s one of the big trends we started picking up on probably four or five months ago.”

For years, Web content creators had to worry whether they had the proper level of search-engine optimization to make sure search engines listed them among the top results. Now, they have to consider what companies like Gigya offer – social-media optimization.

“Marketers must focus on social marketing in addition to traditional search, as customers have a multi-pronged way of finding information,” said Jeremiah Owyang, a Web strategist for the Altimeter Group, a San Mateo consulting firm with clients like Gigya. “The clear-cut channels of yesteryear are now an intricate set of connections.”

Using a snapshot of Web traffic from December, Compete’s director of online media and search, Jessica Ong, found that 15 percent of traffic to major Web portals like Yahoo, MSN and AOL came from Facebook and MySpace. The lion’s share of that traffic, 13 percent came from Facebook.

Google, which has profited handsomely from directing Web surfers to their destinations during the past decade, was third with 7 percent, just behind e-commerce site eBay, which had 7.61 percent. MySpace was fourth with just under 2 percent.
Surprise gain

The numbers proved eye-opening because Google used to dominate most Web-referral categories. “I was surprised to see Facebook has become No. 1,” Ong said.

In other categories, Compete’s data showed Mountain View’s Google still on top, but Palo Alto’s Facebook was not far behind. For example, Google accounted for 21.3 percent of referrals to sites catering to movie fans, but Facebook was second with 12.4 percent. And in a video category, Google – which owns YouTube – was first with 22.9 percent, but Facebook was next at 12.7 percent.

Facebook’s meteoric growth as a Web destination was a factor. Facebook says it has 400 million active members, including about 225 million added in just the past 12 months. Its size now rivals that of major Web portals and its demographics mirror those of the Internet in general, Ong said.

“Putting all this information together, we can say that Facebook has become an integral part of the consumer Web experience, similar to how portals like Yahoo and MSN are part of most consumers’ online sessions,” Ong said. “So the message for the advertising industry is that more serious attention needs to be paid to social-networking sites like Facebook, and advertisers need to figure out how to leverage this traffic.”
TurboTax gamble

One of Gigya’s clients is financial software maker Intuit Inc. Seth Greenberg, Intuit’s director of national media and digital marketing, said the company is betting on social media to draw customers to its TurboTax Web site this year. The tax preparation program generates about $1 billion in revenue in the 10 t0 15 weeks leading to April 15.

Half of TurboTax’s 20 million users are on Facebook and each has an average of 150 friends. Intuit is using social media to generate more buzz about the program through the sharing of product reviews and answers to tax preparation questions.

Greenberg coined the phrase “friend-casting” to describe how Intuit is using social media.

“We actually want our customers to be our best sales force, not us,” Greenberg said. “Enabling our 20 million-customer base to be a word-of-mouth army for us is much more interesting.”
Strong influence

Although methods such as paid search, Web display ads and TV commercials still reach a larger audience, the “influence” tapped in social media “is a heck of a lot stronger than it is with traditional advertising,” he said.

David Berkowitz, director of emerging media and client strategy for the digital marketing firm 360i of New York, said the importance of search engines isn’t going away.

“But there’s always been one downside to search,” he said. “Consumers only spend about 5 percent of their time online searching and the other 95 percent of the time at the destination. Social media is quickly accounting for a large percentage of that 95 percent. Google’s biggest acquisitions, DoubleClick and YouTube, have been all about playing a big role in the rest of consumers’ Web usage.”

He noted that last week Google purchased San Francisco’s Aardvark, a social-media search engine for questions and answers, and then unveiled Google Buzz, which allows Gmail users to post updates, videos, photos and links, Facebook-style.

“Mobile will be another new source for search, and some of that will be incremental rather than cannibalistic,” he said.

“But social media’s just finding its feet and the business models are just starting to emerge. And they’re evolving quickly.”

There are many reasons to write a business plan, but the most important reason is to go into your new venture with your eyes wide open.  If an existing business is currently running “in the red”, what, if anything, can you do to change that?  What overhead will you have?  How many employees will you need?  What kind of marketing will you need?  How costly is the marketing?  How many units do you need to sell to “break even”?  To make a profit?  The list goes on and on, but you get the idea.

Another reason to write a business plan is for funding.  It doesn’t matter if you are going to a bank for traditional funding or applying for a grant, you will absolutely need a business plan.  All lenders want to know if your business ideas are viable on paper.  Big dreams must be in black and white for funding success.

Frank Fiore, author of “Writing a Business Plan in no Time” lists the following reasons to write a business plan:

1. It defines your new venture.
2. It answers the question: will the business make a profit.
3. It provides an estimate of your start up costs.
4. It devises an effective marketing strategy.
5. It helps you compete in the marketplace.
6. It measures your business performance and tracks your growth.

I hope this answers the basic question of “to business plan or not to business plan”.

Let’s face it, the questions are many and the answers are few.  Phillips Business Solutions will assist you in answering all of your business questions.   Our experience is as eclectic as our clients.  We understand that each business has unique needs and goals.  It is our goal to pinpoint your business needs, untie the knots of confusion, answer the long list of questions, and bring your business dreams to fruition. 

Because we know your time and resources are valuable, we offer a complimentary, one hour consultation.  We look forward to meeting you and assisting you with your business aspirations.