The reason why Social media networking is a huge success is because of its Friend-Of-A-Friend trust model similar to word of mouth. Studies reveal that, while 14% People Trust Ads, 76% of People trust consumer recommendations for purchase decisions. The FOAF model enables users to interact with network users to whom they are not otherwise directly connected. Users can establish different rules of engagement for different types of connections in their network; the closer the connection to a user in terms of degrees of separation, the more trusted that user is. This is the key difference between Social networking and traditional SEO or PPC strategies. Users maintain direct connections to their friends, but they also have some level of access to the direct connections their friends maintain to other people.
Public social networking services such as Facebook, MySpace, LinkedIn, and Friendster can be valuable sales, marketing and support tools if you know how to effectively apply them for your business.
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