Business Networking is Back...

Business face to face networking is coming back... at least for now. It is a great way to meet new people, reconnect with old friends and grow your business.

But there are common mistakes that thwart our efforts to build our network. These cost us referrals, destroy relationships and impact our businesses for years to come. So today let's talk about these mistakes...

Today's subject is business networking... more specifically "The 3 Most Common Mistakes to Avoid!"

First Mistake:?Not Following Up?

Does this scenario sound familiar? You attend an open networking event, go to a networking group, or meet business people at a trade show.?On your desk is a pile of business cards.?Potential referrals are there for you, but you never follow-up.???

Too busy??Thought about calling, but never get around to it??Not sure what to do, so you do nothing??Hoping they call you??

Unsuccessful networkers fail to see the results they want because they fail to follow-up.?How many of you have personally given quality referrals to other networkers, only to ask about them a short time later, and discover that they never bothered to contact the referral.?What is the likelihood that you will give this person another chance?!???

To gain referrals, on a regular basis, you need to develop quality relationships with business people that have the ability to make introductions to potential clients on your behalf.?These relationships take time to grow and develop, and they begin with an initial meeting…and that requires following-up.?

Networkers follow-up in a variety of methods and there is no one perfect solution for every situation.?If it works for you, then use it.?If the situation requires that you choose a different method, then make an adjustment.?Follow-up might be accomplished by…?

• Phone?
• E-mail?
• Connecting on LinkedIn?
• Or even, dropping by?

The key is that you do something!?Not sure what to suggest, as a next step, when you do follow up??Consider…?

• Coffee?
• Lunch?
• 30-minutes at their office?
• Arrange to meet at an upcoming business event?
• Invite them to attend your networking group, as your guest?

?

If you have a significant number of people that you need to follow-up with, consider inviting several to gather at once.?This brings added value, as they get to meet each other, as well as follow up with you.?Try events, such as…?

• Group breakfast or lunch?
• Business ‘meet up’??
• Host a ‘lunch and learn’??
• Attend a local sports event?
• Wine tasting?
• Happy hour?

?Improve your follow-up and you will start to see better results!?

Second Mistake:?Not Having a Strategy?

The majority of networkers I have interacted with spend a significant amount of time at local groups and events, with the hope of receiving referrals, but few have a clearly defined strategy.?

• Who do you want to meet??
• Which Industries are most likely to provide you with referrals and which industries can you refer to (Remember, networking requires both give-and-take!).?
• Who have you met that has a relationship with companies or individuals you want to be affiliated with??
• How many referrals do you need to hit your sales goals??
• How many referrals can each of your referral partners provide??
• How many referral partners do you need to accomplish your goals??
• Which local groups or events are most effective??

Operating without a plan/strategy may not lead to failure, but it certainly could hinder success.???

Start your strategy by setting goals and commitments for your networking efforts.?How many hours per week can you commit to networking activities??How are you going to follow-up??How many people do you want to add to your contact base per week, month, and year????

Next, determine how much revenue you want to add to your business from your referral partners.?Then, determine your average sale and divide them to determine how many referrals you need to receive.?

Then, create a conservative estimate of how many referrals each of your referral partners can provide you with and what closing rate you have.?This tells you how many people you need in your referral network.?I suggest you target 25% above this number to build in a margin for error.?

Now you have a strategy for how many people you are looking to partner with!?

Next, select groups and events that are likely to enable you to meet high quality referral partners and attend these events.?

Meet, follow-up, grow the relationship, and you will receive referrals!?

Third Mistake:?Failure to Educate Others?

The reality is that people need to understand what you do, why you do it, and who your desired customers are in order to refer to you.?However, many networkers fail to educate others in what constitutes a quality referral.?

In order for you to receive a quality referral, there are three key things that people need to know about your business…?

1. What products and services you offer?
2. Who your ideal client is?
3. How you would like to be connected with potential clients?

I have watched networkers go months, even years before they mention a service they provide or a product that they offer.?To illustrate my point, I will share with you an example. An attorney I network with specializes in estate planning.?Over the years, he has received a significant amount of referrals for wills and living wills.?While talking to him one day, he expressed frustration with the type of business he received.?“Tim” he said, “I appreciate the business I get, but doing wills does not pay the bills.?I need people to refer me people that need trusts set up or full estate planning services performed.?That will pay the bills.?Plus, I receive leads for legal issues that I don’t handle, such as divorce, accident. I don’t think half the people in our group even know what an estate planning attorney does.”?

The problem was, he would stand up in his 60-second presentation and say he was an attorney specializing in estate planning.?He was absolutely correct in that many members did not know what he did; therefore, they referred the wrong types of people to him.?My response was that it was his responsibility to educate the group on exactly what an estate planning attorney does and what a good referral for him included.?Soon thereafter, he began to do so and quickly started receiving the types and quality of referrals he was interested in.?

The bottom line is you have to help others help you by educating them on what you do and what a good referral is for you.???

So, take a moment to reassess your follow-up practices; your networking strategies; and how effectively you communicate your value proposition.?Implement these changes and I assure you that you will see an increase in the volume and quality of referrals you receive.?Good Luck and keep networking!