The Limitations of Relying on a Network

It's been four years now that I have been doing business development for multiple clients. I have spoken to hundreds of vendors exploring using my services during that time. And there is a discussion that happens regularly, with predictable results:

Prospect: "Do you have a network in X (then lists a niche area where I have not worked before)?"

Me: "I don't, but I have a proven track record of coming into new functional areas and generating a pipeline of opportunities quickly."

Prospect: "We really want someone who has a Rolodex of contacts in our industry already."

Me: "The only way to get that is to hire someone from a direct competitor."

Prospect: "Thank you, we'll think about it."

Can you guess what the result is?

You nailed it. I never hear from the prospect again.

At the same time, I've had multiple clients who engaged me and got good results despite my lack of contacts in the field they are working in.

Why is that happening?

Over the years, I have built a process for generating leads. I work with 12 lead generators, we outsource simple routine work, and we have a medical advisor available should any of the lead generators have questions. Finding the right companies and the right people is a lot easier when you have someone who is dedicated to the task and can concentrate on it. And people are much more likely to reply to a cold email if it comes to the right person at the right time.

But what about the little black book? Are the people with existing contact bases not able to find opportunities quickly?

Indeed, an existing network can work very well and deliver results quickly. There are, however, several caveats:

• You may know the right people, but that does not mean they have a need right now. When looking for leads, you can target people with the current need.
• Even a large network eventually runs out. What that usually means is that a couple of months of high activity are followed by a standstill. And businesses need the inflow of leads all the time.
• Networks have to be maintained. A network that is not current gradually loses relevance – people leave jobs, retire, move, etc.
• The move to digital contacts erodes the ability to form a network. It used to be much easier to maintain personal contact with the same people over a number of years. Lower conference budgets and the new attitude towards conferences means that people are harder to meet, and this will only get worse.

This process is especially visible in founder-led consultancies. They are built using the network of the founder. But 10 years later, after months and years of non-stop work, the founder may discover that most of their network is no longer there.

In conclusion, having a network is a nice bonus. But it's not a substitute for having a structured process in place to develop a pipeline of warm leads.

Would you agree?