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It's the person and what their goals are. If they go to work to work then social media isn't a problem but if they're there for a paycheck and they're just trying to float through life then they probably could get more done without social media sites. I tend to think that if people didn't waste/spend their time on social media sites, they would waste/spend time on something else.
I'll always encourage employees, friends and family to blog, post on forums, visit social media sites etc., if you're in the right places, the education and networking abilities are priceless.
I have yet, to read where anyone is actually creating a ROI from Twitter. However, I do read a lot about people being addicted to Twitter.
I have found that if you use the best ranking ones...like digg, facebook, youtube...etc the higher more popular ones instead of using every soc media site and have 40 accounts your results are alot better...
remember its always quality on quantity if you want good results.
* Testing new ideas with the people that follow me
* Getting help - there are smart people who follow me
* Branding - it's a great tool for personal branding
* Product feedback - I can get quick feedback for new products and services
* Hidden news - lots of valuable information is shared by those on Twitter (which stays on Twitter)
I have to admit though, without the Twitter list started by Brian and the tool that was made to make adding all the people on that list simple, it might have been a different story.
I've gotten a lot out of Twitter in the short time I've been using it. Good information, answers to questions, an inside look at the thoughts of different people, increased communication with people who's attention I hadn't had before, and the list goes on.
Social media can take up a lot of time and not all of that time is necessarily productive, but there's nothing wrong with that either.
But for one day there really wouldn't be an effect people would just sleep or go outside(if they can). Saying that innovation would stumble is exaggerated as well. Its an interesting topic though