The purpose of this study was to investigate the impact of the Social Media and Social Networking sites on Business Firms' effectiveness and profit. In order to achieve the objectives of the study, a questionnaire was developed and circulated by hand to the 37 employees of telecommunication sector which was the target field of the study. The simple random sample was used in order to ensure a sound representation of population. Different statistical tools were used to make analyses for the data collected. The study findings indicated that there is a majority of opinions confirming that social media and social networking sites affect positively and have a significant impact on the firms' effectiveness and profit especially in the telecommunication sector. The study also finds that there is an obvious and tangible difference between Social Media and Social Networking sites conceptually and applicably. Based on the results a set of recommendations were proposed