Why is social networking more advantageous then regular networking?

Social networking allows a business to increase their word-of-mouth marketing, helps them get their name out there through a unique channel and gives them real time information on what current trends are.
For example, say you and I meet at a mutual friends party, get to talking and after adding each other on Facebook become good friends. A couple of weeks down the road you need to buy a domain name and remember that I am a web designer. When you call me to get some advice I refer you to my favorite seller and without much question you go where I recommended because you trust my opinion. Well social networking allows a business to become the 'hypothetical me' in the story. This comes in especially handy when that 'hypothetical me' owns, or is an affiliate of, the domain seller that I sent my friend to. Also, after that friend has bought their domain and have had a pleasant experience with the domain seller they are likely to refer other friends to that seller as I did. Or even if that friend has an unpleasant experience the chances are very good that they will post about it online, allowing a business to gather intelligence on why that user walked away unhappy.
Now some of my clients have asked, "Well isn't that sort of sneaky? Pretending to be their friend to get the sale?" To which I reply, "Who is pretending?" The point of social networking is not to trick users into buying from you. It is another way to network. Period. Users are there to socialize. NOT to be marketed at. (To read why I am so zealous about this read 'Why businesses fail in social networking....' here.)