You've got 3,560 people following you on Twitter and 1,450 fans on your Facebook page. That's great for your ego, but what's it doing for your bank account? Is social media a money-making machine or is it just a bunch of hype?

Sheila Dukas-Janakos, owner of Healthy Horizons Breastfeeding Center in Burlingame, California, is a believer. She now gets about 15% of her business from social networking activities – having a Facebook page, running an active Yahoo Group, being listed on Yelp. Meanwhile, her Yellow Pages business has dried up completely, and she's even suspended buying ad words on Google.

"It's been a way for Moms to ask us questions...We put up new products once a week, specials, classes. That draws people in…People have come to us from our vendors' Twitter feeds. I'm talking about people from Delaware, all over the U.S.."

How much has all this cost Sheila? Nothing. How much time has it taken? "About five hours a month."

With stories like Sheila's, you can see why social media is all the rage in small business circles. After all, wouldn't you like to leverage the millions of people who use sites like Facebook, Twitter, LinkedIn, to let them know about your business? Social networking seems like a great way to get free advertising. Instead of running ads that cost money – Yellow Pages, newspapers, radio — wouldn't it be nice to just occasionally tweet or put up some Facebook posts and watch the money roll in?

It's not that easy. While some people like Sheila are thrilled, others are putting in a lot more time and effort without any bottom-line results. There are millions of "Twitter Quitters" – many of them small business owners.

The truth is that social media marketing for small businesses can work. Or, it can be a colossal waste of time. Like every other part of your business, it doesn't just happen, it takes work and strategy.

How can you make social media work for your small business?

•Get beyond Facebook and Twitter. They may be the 800-pound gorillas, but on those sites, you're competing for attention with everyone in the democratic world (no Facebook or Twitter access in China..). You don't need to reach the entire world, just your little corner of it. Sheila's had great success by organizing – and managing – a Yahoo Group for new moms on the San Francisco Peninsula. Consider Yahoo Groups and search for "vertical" social networking sites for your industry or specialty.

•Develop a niche. Sheila has a narrowly and clearly-defined specialty, making it easier to develop a following in social media. Just as in off-line marketing, having a niche gives you an edge. You're an attorney? Focus on one of your specialties and your location — let's say commercial real estate litigation in Phoenix. Write a blog or organize a group about that. You may not get as many followers, but they'll likely be highly qualified prospects and referral sources.

•Keep LinkedIn up-to-date. Our book designer, Diana Russell, just got a client half-way across the country who found her on LinkedIn. LinkedIn has become the go-to place to look for consultants and specialists. It costs nothing to upload and update a profile and build a network on LinkedIn. Use it!

•Make a commitment. Sheila may only put five hours a week into her social networking activities, but she does it consistently. When a new mom posts a question, she gets an answer within hours, if not minutes. You have to be engaged to be successful.

•Understand your goals. Consider purposes other than just finding new customers, such as increasing existing customer loyalty. In my neighborhood, two local businesses that use Facebook well are my local coffee shop and a produce market. They announce events, specials, post pictures. They don't have a huge following – 500-2000 fans – but those fans are dedicated customers.

•Watch review sites. Sites like Yelp and TripAdvisor are powerful in driving traffic. Do everything you can to encourage satisfied customers to post. Encourage them to be specific – specific compliments are more powerful than general ones. And add your own information and photos.

Remember, successful social networking takes time – and your time costs. As your business gets more successful, you may need to hire someone to manage your social media or, dare I say it, go back to good old fashioned advertising.

By Rhonda Abrams for USA TODAY