A while ago I wrote a blog post on Wal-Mart and its failed social networking endeavours. Many comments I’ve received regarding that post pointed out that Wal-Mart, in general, is not a very well liked brand. Therefore, regardless of what they do, they would never succeed in that type of open environment.

Although I understand that point and agree with it to a certain extent, I do not believe that it’s impossible for companies who don’t have the best reputation offline to do well in an online environment such as social networking. Through my research I’ve come across a surprising example of one company that has done incredibly well online; a company whose success is quite unexpected.

The company I’m referring to is Microsoft. I would argue that, comparable to Wal-Mart, there are many different interest groups that like to rally against it, but for some reason, Microsoft has managed to develop strong and healthy communities.
The difference: Microsoft has focused on its strengths and has managed to deliver tangible results. The best example, Microsoft’s “i’m making a difference” campaign on Facebook has 67,800 members in its group and has raised $1,409,788 for different charities since March 2007.

I’m is an initiative that donates to a social cause every time a user sends an instant message (IM). Windows Messenger has partnered with ten charitable organizations: The American Red Cross, Boys & Girls clubs of America, National AIDS Fund, The Humane Society of the United states, ninmillion.org, National Multiple Sclerosis Society, Sierra Club, UNICEF, StopGlobalWarming.org and Susan G. Komen for the cure. “Every time you start a conversation using i’m, Microsoft shares a portion of the program’s advertising revenue with some of the world’s most effective organizations dedicated to social causes.”

Windows has taken a non-aggressive approach to advertise its brand, leading people to associate it with a charitable cause and framing Microsoft’s MSN messenger service in a positive light. This initiative is mutually beneficial since it allows Microsoft to build goodwill among consumers while at the same time gain more MSN Messenger users since it has always lagged behind AOL’s AIM service in the United States. With social networks, companies have an opportunity to develop applications or groups that may not be directly related to selling products but can create goodwill and brand equity in other ways.

Not directly related to social networking, but another creative way Microsoft has gotten people to use its IM service (this time catered to Canadians) by holding a contest giving Canadian msn users a daily chance to win $1,000. Users simply have to log in and register once, and they are automatically entered into the daily draw. Users may then increase their chance of winning the money by sharing news of the contest to friends on facebook or on their Windows Live “Space”.