People think of the risks before the benefits when they consider blogging as part of their daily or weekly activities. But when they see the bright side of blogging or even using any other web 2.0 tool they will start thinking a lot more differently than before. There are lots of great ways and benefits of using web 2.0 tools and one of the major benefits would be the sharing and collection of information from these applications is major positive sign, from a business viewpoint, it can have a positive effect if the tools are used wisely and sensibly.

An example of a case study that I read and it involved a rental property business called ‘Urban Apartments’ and its frequent use of social media to promote and market their product. The business used social media tools such as Facebook, Myspace, blogs, Flickr and much more to share information about their product and it resulted in a high return investment. The results were have astonishing as there were increases in web traffic, blog traffic and lease conversions and is currently ranked third in Google search for their brand ‘Royal Oak Apartments’.

http://millennialmarketing.blogspot.com/2009/04/social-media-case-study-urbane.html

This case study that I read just demonstrates the powerful use of social media in the business world. And gathering from my own experience using Facebook on daily basis there are so many events and businesses using Facebook as a way of getting people to recognise and acknowledge their product. Things like night club events is quite popular with young adults as with Facebook itself.
The promotion of a night club event on Facebook will surely provide sufficient details about their product and get people to come to their events. The power of social media and web 2.0 applications typically comes a low price and that will encourage business owners and opportunists to consider it as a must have as a promotional tool.

But there are risks involved in the use of web 2.0 tools as a way of sharing, collecting information to communicate to other people can be damaging if a proper approach is not used. The risks involved include: loss of information, countering negative internal comments, negative external comments on public scene, inappropriate staff behaviour, network security etc. Taking a careful approach reduce, minimize and eliminate any negative impact for yourself or your business.