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Think of social media as a modern day ‘multilevel’ marketing or Tupperware parties without the hassle of physically recruiting and training people to sell your goods and services. Social media on the other hand, poses no geographical and time limits on you. It offers unlimited marketing and selling potentials. You can pretty much connect to your fan/potential customers anytime. All you need to do is to understand how Social media works. It is also a very cost effective medium in generating leads for your business.

Before you start implementing some of these strategies, here are few things to remember.

Clearly define and understand your Social media strategy. For businesses, social media is for building brands, generating and closing leads.

No hard sell please.Objective and consistent message in an informal setting is the key for a successful social media campaign.

Be patient. Social media is an ongoing effort. You r having a conversation with your fans and customers. It is like having a ‘long dinner party’ with guests who might also want to do business with you.

Here are few simple and low cost strategies for generating leads for your business.

1. Facebook Fan page:

with over 750 million users, FB offers great low cost marketing opportunities for your business. By creating a fan page on FB, you can engage your current and future customers with updates, offers, images, and videos related to your business. You can respond to their queries in real time. The page doesn’t have to be formal. It can show the ‘fun side’ of your business. You can also buy inexpensive targeted ads for your business. Make sure all your websites, emails, newsletters and other promotional material has a Facebook link or logo for your customers to find your FB page.

2. Twitter Page:

similar to Facebook, you can set up a company page and start following and promoting your business through twitter page and feed by linking to your website and other marketing and promotion materials. Once customers start following your feed, you can send offers and other timely information to them through the feed.

3. Start a blog:

Blogging is the most powerful marketing tool ever invented by the new medium. A professional blog doesn’t have to be a thesis: it is really having an ongoing conversation about a particular subject. Your job is to stay focus on the subject and offer your expertise and observations. You can blog about anything that is important and interesting to your industry and participants. Once the blog is published, make sure it gets into all the relevant channels for distribution on the net through links, updates and postings. With great content, your blogging could stand out and turn you into an expert.

4. LinkedIn groups:

With over hundred million users, it is one of the most important professional networking sites for sharing ideas with your peers. You can join as many groups or start a new one related to your interest. Start helping others with industry-related problems. You’ll be surprised how many people in that group will check out your business afterwards. Expert comments on group questions are a great way to get more leads.

5. Mobile and local social media:

Yelp, Foursquare, and other mobile social networks can be powerful marketing channels for small businesses. Yelp for example, let you answer questions about your business, track how many Yelp users view your business page, add information about your business, and announce special promotions. With Foursquare you can take advantage of local advertising opportunities.

6. Surveys and Polls

There are plenty of tools available for polling on your website or blog. Ask a question to your audience. How can I make my content better? What do you want to read or learn about? This will help in engaging your more loyal readers and followers.

7. Feed and conversations:

Use keywords about your products or service for monitoring conversations on twitter and FB. If someone is looking for something you sell, suggest your products to them as a helpful hint.

8. Participate in other blogs:

Identify few blogs in your industry and start participating with questions and comments. This is a great way to show your expertise and discuss issues with like minded people. Some of these people are looking for products or services. By getting to know you, they could potentially become your customers.

9. Address all negative feedback or comments:

Social media is about having conversation; sometimes you will find comments from customers who are not satisfied with your service or products. They will post negative comments. Your job is not to delete or ignore them. Even if you cannot fix them, you should try to address customers’ complaints in timely manner and with courtesy. With this simple act, you might turn them into a long term loyal customers.

10. Spread the word:

And finally spread the word about new blogs, articles on Twitter, Facebook, LinkedIn, Digg and StumbleUpon. Draw leads from your communities there, and use community sharing to your advantage.

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