Ivan Misner: Networking
Boost Sales With More Referrals
3 secrets to help you increase lead generation from networking opportunities
By Ivan Misner
| June 28, 2004
URL:
http://www.entrepreneur.com/marketing/marketingideas/networkingcolumnistivanmisner/article71506.html
When you belong to a networking group, it can be difficult
sometimes to obtain referrals from fellow networking members. But
instead of giving up and looking for another group to join, there
are some things you can do to encourage them to spread the word
about your company.
I like to teach entrepreneurs about the three Rs of networking:
relationships, reliability and referrals. First, however, let me
preface my comments here with an important statistic. When
businesspeople begin developing a referral-based business, they
receive a vastly smaller percentage of referrals their first year.
After the second year, the statistic is about twice as high as the
first, and after the third year, it really jumps. (For more on the
statistics of referrals over time, see chapter 8 of my book
The World's Best Known Marketing
Secret.) This being said, let me talk about how the three
Rs of networking affect these numbers and can help you develop a
successful word-of-mouth-based business:
1. Relationships: Word-of-mouth is about
"relationship marketing." If you approach the first year
of your involvement in a networking group with the sole motivation
of getting to know the other members well, you will be far ahead of
the game.
One of the most important things I've learned over the years
is that it is not really what you know or who you know; rather,
it's how well you know them that really counts! People do
business with people they know and trust.
In order for word-of-mouth marketing to work for you, you first
have to build a strong foundation with the people you hope will
refer you to others. That takes time, and the amount of time it
takes varies from profession to profession. Obviously, some
professions are much more sensitive than others to the development
of referrals. So find reasons to meet with each person outside the
networking meeting. Get to them, and work on having them get to
know you better. Make it clear that you value your relationship
with each one of them.
2. Reliability: For the first year or so in a networking
group, you are putting in your time. Your referral partners are
testing you, checking you out and making sure that you deserve to
have their valuable clients and contacts turned over to you.
Therefore, you must be credible to the other professionals with
whom you hope to network. Bear in mind that you should feel the
same way, too. Before you risk your reputation with your clients by
referring them to someone who takes less care of them than you
would want taken, you must be very sure that the person to whom you
refer them is reliable! How else are you going to know that-unless
you use them personally over a period of time?
3. Referrals: After cultivating relationships and proving
yourself to be reliable, you get referrals as the end result. In
order for someone to receive, someone else has to give. This holds
so true with referrals. I would suggest you perform a reality check
to see just how effectively you are referring the people in your
networking group. You might be surprised to find how little you
actually refer others, or that you consistently refer the same two
or three people.
If you aren't tracking your referrals (both given and
received), first read last
month's article and then start tracking them. Look for
patterns. I would anticipate that in the months following a month
you were particularly active in referring others, you will find
that you are receiving more referrals! I have seen the "what
goes around, comes around" principle illustrated over and over
in BNI, the networking organization I founded 20 years ago.
This is a natural progression and one that can't really be
rushed. I know it can seem frustrating at times when you are
anxious to see your bottom line increase quickly from all the
referrals you are anticipating receiving, but believe me, if you
are patient and apply these techniques, you will see word-of-mouth
marketing work for you in a big way.
You can't take an orange tree and rip it up from the ground
after a year and replant it on the other side of the yard, just
because it wasn't bearing fruit where it was. You have to
water, fertilize and care for the tree where it is. In time, it
will produce fruit. Your efforts will pay off. You must approach
building a word-of-mouth-based business this way. In a solid
networking group, you are growing solid roots with the other
participants. The worst thing for you to do is pull them up just as
they are getting set.
is a New York Times bestselling author and founder
and CEO of BNI,
the world's largest referral organization with over 3,100
chapters in 17 countries around the world. His new book,Masters of Successcan be viewed at www.MastersofSuccess.biz. Misner teaches business at
Cal Poly University, Pomona and resides in Southern California with
his wife and three children.
The opinions expressed in this column are
those of the author, not of Entrepreneur.com. All answers are
intended to be general in nature, without regard to specific
geographical areas or circumstances, and should only be relied upon
after consulting an appropriate expert, such as an attorney or
accountant.
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