I’ve long been a believer in networking. So far, since restarting my business, I’ve spent more money on networking than anything else. The Huntsville Chamber of Commerce and BNI have been the two biggest outlays of time, money, and other resources. Not just the dues, but the mileage, meals expense and again – the time.
I will point out here at the beginning, because networking means a lot of different things to different people, that I’m primarily defining networking as activities done primarily to get people to refer you to others. For example, with Nectar Bridge I primarily look for customers who are in home services trades. These people don’t attend networking events, for the most part. They’re far too busy. When I attend networking events, I am mainly talking to people who can refer me.
My investments in networking have, in just under three months, introduced me to many people, and helped me understand the local area in profound ways. In writing this, I realize that I’ve actually accomplished more in this direction than I realized. This is a good epiphany, because I have mostly been focused on where I’m failing (which is, unfortunately, a lifelong personality trait). Just under three months ago, I was a member of one group, Vantage, which had, as a secondary purpose, networking in business. This group is primarily about Christian fellowship and mentoring. By the way, Vantage brought me my largest client, right about the time I went full-time!
High barrier to entry
What I’ve come to realize, however, is that in focusing on networking, I’ve neglected selling. Or think I have. The jury is still out!
No one likes cold calling. I don’t believe that’s because of shyness or introversion. Credibility is currency, and it’s diminished by highly direct, cold outreach. We know this as consumers – we instinctively mistrust emails from people we don’t know, phone calls we don’t recognize, and worst of all, the knock on our door. As consumers we want to feel we’re in control, and when we need something we prefer to search for it. I don’t know why we trust Google more than we trust people who contact us, but it seems pretty hard-wired.
A lot of what we’re doing when we’re networking is asking those who have somehow established ties with more customers, or different customers, to look out for us and introduce us. I believe we naively view this as a shortcut. It works, but it’s not a shortcut.
In looking for some facts or research to bolster this opinion of mine, I came across a Harvard Business Review article, Learn to Love Networking. I was somewhat surprised to find that many professionals hate networking with a similar “passion” to how I (and many others) hate cold calling:
Many if not most of us are ambivalent about networking. We know that it’s critical to our professional success, yet we find it taxing and often distasteful. – Gino, et al (HBR).
Seeing this statement, it occurred to me – the problem with cold calling (in my opinion) is the credibility gap. But interestingly, you still have to cross it. No one will part with money, give you access to their home or business, and/or entrust you with personal information without a great deal of credibility and trust.
Think about the people you network with. How many of them will you recommend to your friends and family? If you’re thoughtful about this, you might come to similar conclusions:
- It depends on how critical the transaction is – I’d refer a friend to a restaurant quicker than I’d refer them to an auto mechanic, and in turn quicker than I’d refer them to a heart specialist.
- It depends on what I perceive their overall reputation to be – if I see that not only do I know and trust them, they seem to have a wide following, I will more quickly refer them.
- It depends on how long I have known them
- It depends on what I’ve observed about their overall personality and integrity.
That last item is perhaps the most in our immediate and personal control. When we network with people, we’re making impressions all right. But are they positive ones?
Each of these points could be its own article. But my main point is – networking isn’t free and easy. If we feel we’re on a tightrope when we’re cold calling – must look professional, act professional, and most of all – don’t be weird! – the same thing is going on when we network.
What we’re primarily doing when we’re networking is asking people for referrals to business, not directly asking customers.
As such, it trades one problem for another. It’s easier to introduce ourselves to others who are standing around at a social event than it is to walk through the door of a business where people are working. But it’s less likely to connect us with someone who can definitely buy from us. And even if we make a good impression, there are still the barriers to connecting with a customer that I’ve mentioned above. So the “numbers game” aspect of selling effort is actually worse, and it will still take time (and probably multiple impressions) to be effective. If the “rule of 10” that seems to dominate marketing efforts applies here, we probably need to make ten really solid friends in networking to get to one prospect with a high chance of conversion. I don’t have hard data to back this, but BNI groups tend to be 20-30 people, most of us probably really click with about half of those people, and in the early stages you’re probably doing well to get 1-2 customers out of a group like this.
Lest these numbers seem too dire, it’s also true that networking efforts can (and hopefully will) lead to a few relationships with “super-referrers” – those who have a complementary service and can truly take you along when they go to market. Think – realtors with mortgage brokers; mortage brokers with home inspectors. This is where relationships with groups like BNI really pay off. The thing is, you have to be intentional and put a great deal of work into building these relationships.
Networking is valuable, but don’t neglect the rest of your marketing efforts
Networking has been good to me. I often tell about how I met someone in 2001 at a chamber of commerce event, sold them an order of baseball caps worth about $180, then they called me a year later, interested in having me launch an eCommerce store. Now it can be told – I didn’t know much about eCommerce. In retrospect, did anyone? But the project got me into eCommerce and an entirely different phase of my career.
But like I said earlier, in the process I may have neglected selling, and the rest of the marketing mix. For one thing, I have not been intentional enough in zeroing in on people who can provide many referrals, and talking intentionally with them, in a targeted way. In a way that benefits them and builds trust.
For another thing, I’ve spent a lot of time doing this, because I enjoy doing it. But I haven’t built enough collateral and engaged in some solid thinking about what I’m offering, and how to offer it. In turn, this has perhaps made my networking not intentional enough, not pursued with enough energy with the right people.
During the process of putting the finishing touches on this post, I ended up talking with a friend who is pushing me hard about framing my business more as an “operational partner,” rather than as someone who advises on business software and systems. I also had another conversation with a new networking contact recently that pushed me toward more “systems thinking” as well. My marketing background tells me to go more narrow, while they are telling me to go more broad, strategic.
Time will tell.