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How to Use Social Media Sites :
Social Media sites can be used in a number of ways

Blogging – Blogging is one of the fastest ways to spread the word. So create and post relevant blogs and share with all the people you know.
Submitting Articles – write and submit relevant and high quality articles using specific keywords to various websites.
Forums – Forums are a more subtle form of advertising. Active participation in discussions and conversations will be a good way to disburse information and opinion about your company.
An alternative to submitting articles is posting a video about your company on Youtube.

Some Relevant Social Media Sites
There are a lot of social media sites like Twitter, Digg, StumbleUpon, Delicious, Reddit, Sphinn, Facebook, Linked In, YouTube, etc. Of these sites, Liked In, Stumbleupon and Twitter are by far the best.

With the modifications that have been included in the past 6 months, Liked In has become a lot more user-friendly and extremely favorable for socializing and making new contacts. Stumbleupon provides instant access to a wide range of subjects and categories while Twitter is one of the fastest ways of spreading your message and getting instant feedback.

What to Remember When Using Social Media Optimization Services:-
Using social media calls for a lot of tactic. If used for blatant advertising, you can be penalized by most sites. Keep these few points in mind to help you out:

Do not use the most obvious SEO strategies like link building. They can be very annoying.
Focus on quality rather than quantity on these sites. Your aim is to reach relevant audience, not all and sundry on this planet.
Respect the other individual’s wishes. If he does not wish to post about you, so be it. Maintain a relationship with him, in the hope that he could introduce you to more like-minded people.

Social media optimization (SMO) is an entirely new concept dealing with all the methods that can be used to create publicity, referral traffic, and bookmarking of your website using social media tools. Things like social book-marking, up-voting (or down-voting), content tagging, sharing, liking, RSS feeds and similar all constitute social media activity. For the author, social media optimization is about optimizing your footprint on social networking websites.

Search engine optimization (SEO), on the other hand, is defined as an organic method to increase visitors to your website. The main objective, being to rank a site as soon as possible through on-page and off-page strategies.

I would argue that social media optimization is part of off-page SEO. Since SMO is about getting more traffic on the site through share your site content on social networking sites, off-page. Social networks are driving an increasing amount of traffic to an increasing number of websites. To a large degree, the performance of social referral traffic depends on two factors:

1. How interesting and remarkable (enticing others to remark upon it) your content is; and

2. How easily shareable you have made that content across a variety of networks.