The Value of Community Managers

May 25, 2012 Comments Off

Kevin writes a terrific post about employee value.

In the same department, you have a social media manager.  You're paying this guy $70,000 per year, less than the email manager.  This person is able to quantify the following contribution to the company.
  • Facebook Likes increased from 11,439 to 14,903 in the past year.
  • Twitter Followers increased from 9,493 to 13,771 in the past year.
  • 401 F-Commerce orders and 345 Twitter click-through orders, at $100 AOV (neither program existed in the year prior).
  • $74,600 annual demand.
  • Profit Flow-Through Rate of 40%.
  • Total Profit (not including employee costs) = $74,600 * 0.40 = $29,840.
What is the value of this employee to your company?  What is the potential value of this employee to the future of your company?
You calculate employee value, don't you?

We've begun measuring a few of our client's community managers based upon something similar. The results haven't been dazzling. Some cost more than they generate.

The great challenge facing community managers is identifying, increasing, and communicating the value they offer organizations.

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