Networking Now:

When I ask people what they think the No. 1 trait of a master networker is, most people think it’s that master networkers, above all,  give referrals to others.

However, according to a survey of more than 2,000 businesspeople from four countries that was published in Masters of Networking, a book I co-wrote with Don Morgan, the No. 1 trait of master networkers is that they follow up on the referrals they are given. “Giving referrals” didn’t even make the top five!

The reason for this top ranking is that if you present opportunities to someone who consistently fails to follow up successfully–whether it’s a simple piece of information, a special contact or a qualified business referral–it’s no secret that you’ll eventually stop wasting your time on that person.  He’s an embarrassment to you as the referral giver and to the prospect, who ends up wondering if he did something wrong.

So if you strive to be a master networker, always remember: When it comes to business referrals, following up is not an option; it’s a life-or-death requirement.

Curious what the survey revealed to be the remaining top five characteristics of a master networker?  Come back next week to find out!

In my last blog I promised you that this week I’d tell you a story about the way someone once recognized me that kept me wanting to refer him over and over.  Well, here goes . . .

A few years ago, I visited my chiropractor for a routine adjustment.  Several weeks before, I had referred him to a friend who had recently been in an accident.  As I walked into the waiting room, my eyes fell on a bulletin board that was displayed prominently on the wall.  The bulletin board read, “We would like to thank the following patients for referring someone to us last month.”

Actually, there was nothing unusual about this sign.  It had been there on each of my previous visits–but this time, my name was posted on it.  I took notice and was pleased, but I didn’t give it a second thought, until I returned a month later and saw that my name was no longer on it.  Instantly I thought, Who else can I refer to the doctor so that my name will be put back on the board?

For the record, my name has consistently been on that board for the better part of three years now . . . and I plan on having it stay there. 

Rather than receiving a finder’s fee, for most referral sources  it is more important to be recognized as a person who can direct others to the goods and services provided by skilled, highly competent, trustworthy people.

Over the years I’ve witnessed time and again that most people will do more for simple recognition than for money. However, for those who expect a finder’s fee, this is a good thing to know in advance if you want to keep the relationship healthy, active and profitable.

You will find that different motivators will inspire different members of your referral team, and this is a matter in which understanding the various behavioral styles of people can be helpful.

People who are embarrassed by being in the spotlight, even for accolades and applause, might prefer their rewards low-key and private–perhaps a simple thank you or an evening cruise on your boat if you are a boat owner.  Those who like public recognition might prefer seeing their name showcased on your bulletin board.  Still others may be more highly motivated by an inexpensive but thoughtful gift than by a more substantial cash reward–a bottle of wine from a winery near their hometown or a coffee table book about their favorite travel destination.

The point is, simple recognition really resonates with most people and, more often than not, simply recognizing people in the way they prefer to be recognized is a far better reward and incentive for them to refer you to others than offering them a cash finder’s fee.

If you’re in the habit of recognizing people as a way of thanking them for referrals, please leave a comment about what’s worked for you and even what hasn’t.  Then check back next week to read my story about a way in which someone recognized me that kept me motivated to refer that person over and over again!

Over the years, I’ve run into countless people who believe that joining groups and organizations and becoming active by volunteering, taking on responsibilities and working side-by-side with other people on a common goal will cause people to get to know them and refer business to them.  However, this is not how things work.

Granted, it’s easy to think that if you rub elbows with someone long enough he or she will spontaneously start sending you business opportunities. But that’s really nothing more than an entitlement mentality.

Getting referrals usually takes three things: visibility, credibility and profitability.  Ordinary participation in an organization, even a strong-contact referral group, will get you visibility and perhaps some credibility; it won’t automatically get you profitability.  That takes a much more focused approach, along with some explicit talk about the kinds of referrals you want.

By nature, referral relationships are rewarding and valuable when they are created purposefully and by design. If you are assuming that the idea of giving you referrals is going to pop into someone’s head spontaneously if you hang around long enough, you are definitely misunderstanding what a referral relationship is supposed to be.

Woody Allen once said that “90 percent of success is just showing up,” but he wasn’t talking about referral marketing.  “Just showing up” will get you a seat at the table, but you have to pass the food to others and snag your own steak whenever it comes around.  It’s not “netsit” or “neteat“–it’s network!“  If you want to build your business through referrals, you have to learn how to deliberately work the networks to which you belong.

You see, participating in a group is one thing; performing is another.  To get referrals, you have to perform.  If you don’t perform–talk specifics about your business, your specialties and your ideal referral, and refer business to others in your group–how are they going to know what you do and what you need?  You have to take specific actions to let people know how they can refer business to you.  Being a good citizen is the right thing to do, but it’s not enough to get you the referrals you need to run your business by word-of-mouth marketing–you need to actively feed and water your referral relationships, so to speak, in order to significantly grow your business through referrals.

People often think that networking is all about talking business and exchanging cards, but that’s a definite misconception.

In a networking group, you should talk about more than just business. A referral relationship is more than just, “I do business, you do business, let’s do business.” A much better approach is to find common ground on a personal level, then relate your business to it.

The longer I’ve been involved in networking, the more I’ve seen the power of personal interests in making connections. Networking is about building personal relationships. If you remove the personal from the equation, you limit the amount of business that can happen.

In one networking group I worked with, I introduced an exercise called the GAINS Exchange, in which people share personal and professional information about themselves. Two of the participants in this group had known each other for more than a year but had never done business. During the exercise, they discovered they both coached their sons’ soccer teams. They quickly became close friends and were soon helping each other conduct soccer practices. After a few months, they began referring business to each other–two guys who had barely spoken to each other the first year because they seemed to have so little in common.

By finding a common interest and starting with that, we can make connections that have a very good chance of turning into business. Try this strategy out for a while and then come back and leave a comment to let me know what your experiences have been–I’d love to hear about them!

I had a conversation with an associate recently who was surprised that she’d gotten flack from a referral source for taking five days to follow up with a prospect that the referral source had referred to her. My associate explained to me that she doesn’t like to follow up with prospects for four or five days because she doesn’t want the prospect to feel like she’s too eager. I told my associate that I strongly disagree with her follow-up strategy and my reasons why are outlined in the following paragraphs . . .

When building relationships, it’s always important not to let much time lapse without following up the first contact. Within seventy-two hours, send your prospect a note expressing your pleasure in communicating with her. It’s still too early, though, to send business literature or make any move toward sales promotion.

Follow up early, but don’t push beyond the prospect’s comfort level. Once the prospect has expressed an interest in your products or services, provide information about them, but don’t force it on her. Continue presenting your products or services, but avoid the hard sell. Focus on fulfilling her needs and interests. Your goal should be to keep your prospect aware of your business without annoying her.

Remember, to secure the long-term loyalty of your prospect and convert her into a customer, you must first build a relationship, and that relationship must develop through the visibility, credibility and profitability stages. It may take a while, but if you’ve selected and briefed your sources well, you’ll speed up the process.

Always, always, always remember to follow up with people, in any situation, at the very least within seventy-two hours. There’s a reason people commonly say that the fortune is in the follow up . . . when you follow up quickly with people, your reputation will benefit, your business will benefit, and eventually your pocketbook will benefit as well.

If you want to create meaningful relationships and maximize your networking efforts, read below for three pitfalls that you must avoid in order to be an effective networker.

Delusion No. 1: You should always get a referral when you’re in front of the referral source.
If your strategy requires you to be present in order to get a referral, you’re putting severe limits on your potential business. Referrals happen when you’re in front of the referral source only if your system is dependent on your asking for the referral and getting it at the same time.

In a strong, fully functional referral system, most of the referral process is going to happen when you are not present. You don’t want the system to shut down when you’re not there; you want your referral partners to be out looking for opportunities to refer you at all times. You want them to be in the habit of recognizing good opportunities for you and persuading prospects to contact you. If they don’t think of you when you’re out of their sight, you haven’t done a good job of training your clients or selling yourself to your referral partners–which probably means you haven’t been doing them much good, either.

You should make it your job to equip your referral partners with information about you that can be easily communicated to prospects. You should be making sure they’re motivated to refer you when you’re not around. And you should have a tracking system that can tell you what happened when you weren’t there in person.

Delusion No. 2: To maximize your chances of getting good referrals, it’s best to move from one networking group to another at regular intervals.
This is called “scorched-earth” networking, and it’s about as friendly as it sounds. The scorched-earth networker burns and pillages for new business. He’s a hunter at business meetings, more interested in bagging the big sale than in building relationships and helping others.  He does everything we say not to do if you want to build your business through referrals. He represents the absolute worst in networking.

The scorched-earth networker is constantly dissatisfied with the quantity and quality of the referrals he’s getting, so he moves on. He flits from one networking group to another, doesn’t establish any roots or relationships, networks relentlessly with everyone he meets (often inappropriately), believes that being highly visible is the key to referral success, and expects referrals from others even though he has done nothing that would make anyone else want to help him.

Serious networkers understand that, in order to build mature, healthy and mutually profitable relationships, they must devote a lot of time and effort to growing those relationships.  Have you heard the old saying, “Time equals money?” This is never truer than when it comes to membership in a referral-networking group. The longer you are committed to building the relationships, the greater the results you will experience.

Delusion No. 3: Your best source of referrals is your customers.
The reason people sometimes fall into this delusion is that they’ve been trained to believe it and have never pursued any other source of referrals. The only referrals they’ve ever received are from customers.

Don’t get me wrong: Customers and clients can be a good source of referrals; we know that. However, many businesses (especially big corporations) are out of touch with the fact that other referral sources are available that can be extraordinarily powerful. Clients, although often the most readily available sources, are not necessarily the best or steadiest sources of high-quality referrals. The best sources in the long run are likely to be the people you refer business to. When you help another businessperson build his or her business, you’re cultivating a long-term relationship with someone who’s motivated to return the favor by bringing business to you, who shares your target market and who will work systematically with you for mutual benefit.

So many times we take our business cards for granted, and we so easily forget to carry and use this compact, energy-efficient, low-cost, low-tech instrument–a self contained device with no gears, springs or batteries that keeps working hours, weeks, years and even decades after it has left our hands.

I’ve said this many times before. But since I haven’t blogged about it in a long time, I thought it’d be a good time to reiterate that the business card is the most powerful single business tool, dollar for dollar, that you can invest in.

Your business card serves a multitude of functions–none of which goes into action until the second you give it away!

BENEFITS OF THE BUSINESS CARD:

• It tells people your name and the name of your business.

• It provides your address, telephone number, fax number, e-mail address, website and other ways of contacting you.

• It lets people know who you are, what you do, what your qualifications are for doing what you do, how the things you do can help them and, perhaps, even what you look like.

• It demonstrates in text and graphics why a person should consider doing business with you rather than somebody else.

• It can give others a taste of your work, your style, your personality–even your voice.

• It can persuade the person you give it to that you are intelligent, creative and resourceful.

• It can be so unusual, attractive, strange, charming or funny that it sticks in the memory like a great radio or television ad.

• It can present the same messages to anybody who gains possession of it, long after it has left your hands for the last time.

WHAT’S MORE . . .

• It never needs repair or maintenance.

• It requires no license to own or operate.

• It can be carried by the dozens in your shirt pocket or purse.

• It fits easily and unobtrusively in your hand and starts working automatically the instant you hand it to someone.

Here’s the bottom line: this amazing little tool, this tiny advertisement that keeps working and working, is the most cost-efficient promotional device you can own. If you haven’t given much thought to your business card lately, or have been neglecting to hand it out at every opportunity, now’s the time to start paying attention to your business card and utilizing it to reap the great benefits.

Whether you’re a master networker or you’re new to networking, we all face challenging situations at times, and sometimes we need to rely on the help and encouragement of others.

I’m a big believer in learning to rely on the people who respect, admire and love you. Theirs are the purest motives for helping you. They are genuinely interested in you, mostly accept you as you are and will usually do whatever they can to help you achieve any goal. They may not have all the knowledge or information you need or the ability to bring you new clients, but if you direct their willing efforts, they can give you emotional, spiritual, physical or financial support.

The gift of time can be a valuable resource. Members of your network’s support component can help you at crucial times in your business. They can perform essential tasks, lend you money, encourage you, work for you, help you deal with an emergency, serve as a sounding board for your ideas, even fill in for you for a couple of hours. To make the most of this resource, learn about the talents, knowledge, and contacts these friends and supporters have to offer.

CATEGORIZE YOUR SUPPORT NETWORK MEMBERS

1. YOUR MENTORS
People who are or have been your mentors genuinely believe in you, care about you and your success, and can be counted on for honest feedback and encouragement.

2. PEOPLE YOU HAVE TAUGHT OR MENTORED
These people are usually excited to hear from you and will remind you of how much they appreciate your support. They also open doors to business opportunities by constantly spreading positive word of mouth about you.

3. PEOPLE YOU HAVE HELPED
People remember people who have done something for them. Can you identify people to whom you have donated money, time or other gifts? Most will go out of their way to support you.

4. YOUR CO-WORKERS, COLLEAGUES, ASSOCIATES AND CLASSMATES
Friends you have made in the course of your schooling and career are often friends for life. You know, like and respect each other. Of course, you may be reluctant to call upon a friend for help because you don’t want to admit you need it. But don’t let your ego get in the way; use these sources. A true friend will be eager to help and will not think any less of you, nor make you feel diminished for asking.

5. YOUR FAMILY AND CLOSE FRIENDS
You may take your family and personal friends for granted, but they are perhaps your most reliable source of support. Don’t ignore them. Keep in mind, however, that some may be more reliable than others.

6. OTHER MEMBERS OF NONBUSINESS GROUPS
People you have worked with outside of business–members of neighborhood watch groups, apartment associations, community youth programs–may be willing to support you in activities outside the group’s normal scope. Join, participate, donate generously of your time, and let others help you in your endeavors.

7. YOUR FORMER MANAGERS, SUPERVISORS AND INSTRUCTORS
These people are often familiar with your work habits, ethics, values, character abilities and interests. They know what it takes to get you to perform at your highest level. Often, like surrogate parents, they feel responsible for your success. Should you take advantage of this parental instinct? Of course!

8. YOUR CHURCH LEADERS, MEMBERS AND GROUPS
If you belong to a religious organization, you are bonded to others through a shared faith. It would be a mistake not to seek the backing of your church leaders and other members. If on occasion you need them, don’t hesitate to use the church’s support services and groups.

The following article was written by my friend and partner in the Referral Institute, Mike Macedonio. I wanted to share it with you here because it mentions some very important points regarding asking for referrals. After you read the article, I’d really like to hear what you have to say in response, so please feel free to post a comment.

Just Ask. Right? . . . No.
By Mike Macedonio

I was recently attending a BNI National Conference and there was a lot of effective networking going on. With the culture of “Givers Gain” there were participants offering to help one another and make connections. On several occasions I was also watching some businesspeople walk up to people who barely knew them and ask to be referred to their valued relationships. I felt a sense of awkwardness in the conversation.

I think what I was actually feeling was deja vu. I’ve been on the receiving end of the “referral ambush” before, when someone I may hardly be in the “Visibility” phase with is asking me to expose my reputation by referring them to one of my valued relationships. In some cases, I was even asked to promote them or their company to my entire database.

During the BNI Conference, there was one participant who approached the main speaker and introduced themself. Shortly into the conversation, they let the speaker know that they understood the speaker knew an internationally known personality and that they would like an introduction to that person in order to pitch their business to him. WOW . . . that was a big ask. So why did it feel inappropriate? Part of the reason is the stage of the referral process, or the VCP Process, that the attendee and speaker were engaged in.

VCP is the acronym Ivan Misner uses for Visibility, Credibility, and Profitability. In the Visibility stage, two people simply know of each other. If both people can state the other’s name and business, that would be considered a qualified Visibility relationship. Credibility is when the relationship between two people has developed and both parties hold a mutual trust for one another. Profitability is the ultimate referral relationship goal. In this stage, both parties are reciprocally referring each other business.

In the situation I observed at the national conference where the conference attendee asked for the referral to the internationally known personality, the attendee was merely in the pre-visibility stage with the speaker. It’s true that the attendee might have mistakenly felt that they were in the credibility phase with the speaker, maybe felt that they knew him, since they had been watching him connect with the audience repeatedly over the course of the three-day event. However, it’s important to always remember that credibility is something that is established over a substantial period of time–not just a few hours, days or weeks. It takes months and, in many cases, years to develop real credibility with someone.

In closing, let me clarify that yes, I do believe that in order to get referrals we need to ask. The key, however, is to know how to ask and when it is appropriate to make the request. When is the right time, you ask? The right time to ask for a referral is when BOTH parties are in the Credibility phase of the referral relationship. Networking should not be a system that ends up alienating your friends and family. Be conscious of the deposits you make into your relationships before you start “writing checks” or, in essence, ASKING for referrals from those you have relationships with.

Today’s blog is a unique one because normally you only hear from me; but this entry, which talks about building relationships, was fittingly co-written with my wife Beth, the person in my life with whom I have the strongest relationship.

This summer, our family took a multi-day, small ship tour of the Great Barrier Reef. The first night we noticed that the anchor being used to secure our small ship in the middle of the Coral Sea was quite small compared with the size of the ship.

The second night we were anchored off Hope Island, some very strong winds began to kick up. Our captain started the engines and backed the ship up, letting out more length of chain to the anchor. Curious (and admittedly a bit concerned), we asked him how it was possible for such a small anchor to hold the ship in place with the winds blowing against it so agressively.

“It’s the chain that’s holding the ship, not the anchor,” he informed us. Apparently, after the anchor is lowered, the captain looks to the first mate, who signals from the prow which direction the chain is lying on the bottom of the sea. The captain can then maneuver into the right position and let out the necessary amount of chain to hold the ship according to the particular conditions at that time.

This particular night, with the winds growing stronger, the captain realized that he needed to let out more chain.

It struck us that this dynamic is relevant to networking groups. You see, a networking group’s anchor is its system, its process of doing business. However, it’s not actually the anchor (the system/process) that dictates the strength of a networking group.

Take a look at your networking group and think about the links, or relationships, you have formed with the individual members. How many “links” does your chain have? Do you have strong relationships with all the other members in the group, or are you closely linked with some but disconnected and detached from others for whatever reason?

So how do we go about adding more links (aka building more relationships) so we can let out more chain during times when the economic winds have strengthened against our businesses? We need to get serious about developing stronger relationships with every member of our networking group, even the ones we might not think have the contacts we want, or perhaps are in a business that isn’t exactly symbiotic with ours.

We naturally form relationships with those businesses that are closely related to ours, but what do we do about those members whose businesses are totally out of sync with ours, our members who seem to be unable to provide qualified referrals to us? Try scheduling one-to-one meetings with those members. Spending the time to have one-to-one meetings with each and every member of your group helps you develop a longer and stronger chain of relationships. Each person in your group is one of the links that lengthens that chain.

The wisdom of laying down a longer chain to strengthen the ability of the anchor to hold strong is critical for the success of yournetworking group.

So starting this week, try making it your main focus to develop your relationship chain within your networking group. We guarantee it will be what anchors your business and your networking group for longevity, despite economic flucuations.

Experienced networkers know that the fastest way to expand and enhance their network is to regularly attend gatherings where networking takes place. Having many people with overlapping interests within arm’s reach facilitates the process of making connections based on mutual benefit.

While flipping recently through Masters of Networking, a book I released back in 2000, I ran across an article contributed by my friends Cindy Mount and Jeremy Allen. The article outlines a great, six-part foundation for success at networking events, so I thought I’d share their outline with all of you here.

Attending the Networking Event

As every good networker knows, one of the fastest ways to grow your business quickly and successfully is through word-of-mouth marketing. That’s the fundamental reason networkers attend networking events. And people who have made a science of systematic networking keep six essentials in mind. Each time they attend an event, they have 1. a purpose, 2. a goal and 3. a plan, and they make sure to 4. execute the plan, 5.  evaluate their efforts and 6. follow up on all contacts.

1. Purpose

What’s your reason for attending the event? Do you expect to show up, shake hands and exchange business cards just to be sociable? No . . . your reason for being at the event should be because you see networking as a complete philosophy of doing business and living your life, and because you see that helping others is the best route to helping yourself. Keep this in mind at all times.

2. Goal

What is your destination? What do you need to accomplish at the event? What do you expect the outcome to be? How many contacts do you need, and in what kind of businesses? Do you need to become a gatekeeper as a step in obtaining your desired outcome? Think of professions, trades or business owners who would most likely hear of or see people who need your service or products, and target these people for your networking efforts.

3. Plan

Once you know your destination, you need a map to show you how to get there. A good networking plan will include these things:

Research. Whom do you have to meet? Where do they have lunch? What do their company’s annual plans say? What are some of the trends within your target industry?

Competition. Who are your competitors? What is their market share, and how much market share do you expect to capture? What edge does your competition have? What are your strengths and advantages?

Resources. What resources do you need, and where will you get them? Do you need guidance? Are your listening skills good enough to get you your money’s worth?

Backup. Do you need to recruit new contacts or associates who can take over some of your duties or help you reach your goals faster?

Schedule. How much time have you given yourself to achieve your goals? Do you have contingency plans in case you encounter problems along the way?

4. Execution

Plans don’t work unless they’re implemented. To be successful, you must begin executing your plan. Use a time management planner and project organizer that can show you a week at a glance. Mark dates when you expect certain results, then work backward to monthly, weekly and daily completion of specific objectives.

5. Evaluation

As you reach each checkpoint in your plan, stop and evaluate your results. If you find that a particular networking group is not meeting your goals, adjust your plans. You may need a new way to work the group, or you may need a new group. You may also need to consider learning a new skill or getting some help to meet your goals.

6. Follow-Up

Make complete notes on everybody you meet, keep their business cards and brochures handy, and think about the potential of each new contact you’ve made. Begin making appointments to meet and work with these contacts as soon as practical. Don’t let a recent introduction grow cold and be forgotten.

The key word in “networking” is “work.” It takes time, effort and patience, but the payoff of powerful networking will be a personal marketing strategy that accelerates the achievement of your goals.