Return on investment is a big topic in the social media world.  When it comes to social media, time is often your biggest investment.  Time is valuable, but what is the return?  What can you measure to determine if your investment is wise?

First you need to create a baseline.  Check to see where you rank for your key words in the search engines.  One of the best returns on social media activity is improved search engine optimization, or SEO results. The more you participate, the more people are aware of your activity and will link to your sites.The bottom line is search engines love links.

Use the free tools found at SEOmoz to measure and analyze the links directed to your sites. This will allow you to keep track of the additional links generated by your social media campaign.

Use sites like Social Mention to measure the increased conversation generated around you and your brand.

Name recognition and improved SEO are powerful results from social media activity. Both will generate sales opportunities.

Make note of the information that you glean and act on from social media.  I have learned many new photography techniques, as well as business and marketing ideas that have earned me thousands of dollars through the years.

Using social media to ask questions about locations saves time and is extremely valuable. Social media takes the hard effort out of finding out where I can photograph, eat, rest, get equipment or hire an assistant.  Today a Tweet or Facebook request will save a photographer hours of time.

Traditional media members have become active on social media and use the space to find sources for articles.  I’ve been interviewed and quoted many times due to my social media activity and connections. I’ve even had the opportunity to write for traditional media as a result of my social media activity.

Business is built on networking.  It has been said it is not who you know, but who knows you. Social media lowers the barriers to many important people.  As your social activity grows and name recognition increases, so too will your access to high-level people. LinkedIn offers key information and access not available just a few years ago.

Make note of the direct referrals you receive from your social media contacts.  One of the biggest mistakes new social media enthusiasts make is trying to sell directly to their community.  You’ll achieve more by teaching your community how to refer your services.

For example, if you know that you receive an average of $625 per 5,000  unique visitors to your site — an increase in traffic by 20 percent as a result of your social media activity — you can directly measure the value of new social media traffic.

Maybe phone calls, e-mails or off-the-street traffic are an important indication of marketing success. No matter your measure of success make sure you set a base line.  Ask your customers how they found you and compare your bottom line based on past campaigns and time frames.

So, what is the return on your social media time investment? Consider these benefits:

• Improved SEO
• More industry contacts
• Increased name recognition
• New referral opportunities
• Access to the latest information
• Develop direct messaging to a community of followers
• Traditional media opportunities
• Save time on location or in new cities
• Increased influence in an interested community
• Increased Web site traffic
• Satisfied customers due to better communication
• Better customer service due to conversation monitoring
• Improved business intelligence
• Better understanding of your competition
• Increase customer loyalty
• Capture new e-mail addresses for e-mail marketing

What can you add to this list?