Amazon's Success In Creating Referral Traffic Does Not Always Translate Into Small Business Success

I read an interesting article from AdAge recently regarding Facebook marketing and what companies are doing wrong when it comes to their marketing strategies. The first point illustrated and the one that I want to focus on, is that of businesses “failure to look at the right data” and how many of these businesses are unaware of referral traffic that is being generated from Facebook. The article goes on to say that several large companies have done extremely well in creating referral traffic directly to their website and have seen an increase in sales. Amazon is the primary example explained, speaking to their mastery of Facebook and how 8% of their total traffic to their website for the month of October 2010 was due to Facebook, a 328% increase over previous year, leading up to $25 million in sales for that month.


Unfortunately, small businesses are limited on the benefits of these statistics. While large companies like Amazon or Netflix benefit from the generation of referral traffic of Facebook due to their verticals and immense brand following, it does little to pave the way for small business. The truth is, even though a small business may be in an online retail vertical, similar to  Amazon, odds are the impact of fans creating referral traffic from Facebook are not nearly as successful. Why? Because the level of fan engagement is not as immense as larger companies, for the simple reason they just do not have as many fans to create referral traffic.


For as little ROI that is achievable, it is hard to justify to a small business owner to invest so heavily into Facebook marketing. The best solution available to small business  owners is the one that we have preached, and will continue to drive home, since day one … BLOG. Blogging is the best online marketing tool available to small business owners. A well written blog, distributed along the right channels (including Facebook), can drive more referral traffic to a site than any singular Facebook post.

What is your company’s success rate with Facebook? How many impressions do you generate and how many people actually click through to your website? Leave us a Facebook comment below and let us know.

Also, stay tuned to the JDM Blog for more tips on how to grow your small business.

image credit: soumit on flickr

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