Upworld's Jennifer Magee

As the online social networking phenomenon crosses over into the business realm, the (relatively) new medium carries the promise of accomplishing on the Web what cocktail-party schmoozing can do in person. That is, greasing the skids for deals to be struck and closed. Has that potential been realized? Slightly more than one-quarter— 28%—of you responding to last week’s GlobeSt.com poll agreed that networking sites can help brokers and owners make deals, while 72% call online networking “overhyped.” Jennifer Magee, founder and CEO of the real estate networking site Upworld.com, isn’t flabbergasted by this response so early in the game.

“It doesn’t surprise me that people think the social networks are a bit overhyped when it comes to closing specific transactions. Social networks are more about building relationships over the long term. They’re an investment of time, much as you would invest time when building your contacts offline. You go to networking events in the hope of meeting people who potentially could introduce you to other people, which might lead to some business eventually happening. Social networks are very much like that.

“Social networks have been so hyped in the media that people expect them to be a one-stop solution. They expect to come on to a network and suddenly get a deal out of it. I don’t think it works that way. It takes time, and you get as much out of it as you put back into it. A lot of people join these social networks and then are a little passive about it. They kind of expect deals to come to them and then when the deals don’t come, they say, ‘oh, it doesn’t work.’ And under those circumstances, that’s true; it won’t work.