Building and joining niche communities on social media can be one of the greatest assets to your business.

Communities on social media have been a growing trend since the concept originated with the networks themselves. While any network – like Facebook, Twitter, Google+, etc. – can be considered a community, the true Social Equity derived from communities on social media comes from the niche communities filled with like-minded and highly engaged individuals from around the world.

In this week’s Social Equity segment, we aim to understand how social media communities add value to your business, and where there are unique traits to these communities compared to other types of communities that may also be beneficial to your business.

Niche Communities on Social Media

One of the most touted features of Google+ is their Google+ Communities. In these groups, content is shared with each member without any filtration, as each community consists only of users that have an expressed interest in the content being published. These communities can range anywhere from five or six members to tens of thousands or more; it all depends on how interested people are in the content.

The benefits of communities like those on Google+, groups on LinkedIn and others around the social web is the ability to reach an audience far greater than what was ever possible. Furthermore, unlike conventional, expensive digital and print marketing, communities on social media offer an inexpensive way of reaching out to an engaged audience, sharing relevant content to prospective clients all over the world.

The Key Difference with Social Media Communities

As noted above, there are a few key differences between communities on social media versus conventional business communities. Think about your LikedIn groups and Google+ Communities. Every member is there for the same reason.

The only other type of communities like this that exist are business networking communities, and before social media, these were local business people who may or may not have shared an interest or mutually beneficial business opportunity. Of course, there were conferences, but for many small business owners the cost of attending one is prohibitive, and thus few people (relatively speaking) were able to take part.

Now, with these social communities, opportunities exist where there were none before, and for a fraction of what it would have cost to reach an audience as targeted and wide as those in these social media communities.

Social Equity of Communities on Social Media

The ability to build influence and drive new business in a community on a social network is perhaps the most crucial aspect of the Social Equity derived from these communities. In an infographic we posted recently, we noted the importance of influence on social media. These communities allow you to build that influence with a very targeted audience, very quickly. This in turn results in your market power increasing and, subsequently, your business increasing.

In addition to influence, there is also the ability to reach targeted audiences worldwide without incurring massive costs as with traditional forms of marketing and advertising. Therefore, there is a twofold bump in Social Equity: business generated from engagement in social communities and expenses saved from your involvement in them.

Communities can be a major asset to growing your business, and there is no doubt that they add a considerable degree of Social Equity to your brand.

Where do you see the benefits of communities on social media? Tell us in the comments below or on Twitter!