Is Networking Better Than Cold Calling?

Cold Calling is a commonly used sales activity where sales people contact prospects having never spoken to them before with the aim of creating a lead or sales opportunity.

Business Networking is a less often used sales activity involving attending events with the aim of creating leads, sales opportunities or business partnerships.

Most businesses would prefer their sales teams focused on cold calling to prospect for new business. It's a tried, tested and proven method for creating sales opportunities.

The problem is that cold calling is far less effective, so why is that preferred?

On average cold calling can have around 1-5% success. It's a very time consuming activity generating a lot of data, that if not managed properly is often wasted.

Compare this to business networking where face to face meetings hold an average of 40% success. Most networking events don't last longer than 2-3 hours and are often early mornings or evenings.

Why are businesses less enthusiastic about networking?

I believe there are two main reasons why businesses and sales people are hesitant to networking. The first is that good networking events often come at a cost. You might argue that the difference between 1-5% success and 40% success would be worth a small cost! None the less cold calling is generally a free activity.

The second reason is that it can be a bit more difficult to monitor and track networking activity. Do you record every person you speak to? Do you record how long you speak to them?

So is networking better than cold calling?

The numbers would certainly suggest that networking is far more effective than cold calling, but it is all down to the person. Some people perform better over the phone, where as others perform better in person.

What is clear is that none the less, networking and face to face interactions will always yield a far better return. There are a lot of businesses who generate the majority of their sales through business networking.

Networking events often offer:

• The opportunity to meet local businesses
• The chance to have face to face conversations
• Build long term relationships over several events
• Spread brand awareness
• Often outside of working hours

How can I find local networking events?

There are plenty of local and national networking events and groups. If you are interested in business networking please feel free to message me and I'll happily discuss local opportunities to you.

What do you think?

Do you go to networking events? Do you think networking is better than cold calling? Please write your thoughts in the comments box.

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