Nowadays social media (Twitter, Facebook, etc.), not only simply as communication media, but also for promotion. Social networking media offers many business benefits for companies and organizations. Research purposes is to determine the model of social network media utilization as a promotional media for handicraft business in Palembang city. Qualitative and quantitative research design are used to know how handicraft business in Palembang city utilizing social media networking as a promotional media. The research results show 35% craft businesses already utilizing social media as a promotional media. The social media used are blog development 15%, facebook 46%, and twitter etc. are 39%. The reasons they use social media such as, 1) minimal cost, 2) easily recognizable, 3) global distribution areas. Social media emphasis on direct engagement with customers better. So that the marketing method could be more personal through direct communication with customers.